RIYADH: The non-oil private sector in Qatar continued to maintain its healthy growth in June, as the country’s Purchasing Managers’ Index hit 53.8, driven by a rise in new orders, employment and purchasing.
Compiled by S&P Global, the latest survey data from Qatar Financial Center revealed that the country’s new business growth in June 2023 was the fastest in 10 months.
“New business increased, extending the current growth sequence to over three years. Moreover, the rate of growth in June was the fastest since August 2022 and well above the long-run trend,” said QFC in the report.
Qatar’s PMI, however, eased in June when compared with May’s score of 55.6.
According to the index, PMI readings above the 50-mark show non-oil private sector growth, while those below 50 signal contraction.
“Although the PMI eased to 53.8 in June, the second quarter as a whole recorded a stronger performance than the first three months of 2023, at 54.6. Growth rates for output and new business remain high and well above the six-year survey trend,” said Yousuf Mohamed Al-Jaida, CEO of QFC Authority.
He added: “Companies continue to point to tourism as spurring growth, as well as competitive pricing and new marketing campaigns. Financial services expanded sharply, with its headline indices for activity and new business registering 60 and 63.4, respectively.”
The PMI report further added that the 12-month outlook for the non-energy private sector remained optimistic in June, primarily driven by the creation of new projects, company development plans and marketing campaigns.
“Demand for financial services has accelerated for three straight months as finance remains among the leading sectors. Companies continue to face rising costs but were nonetheless able to reduce their own prices charged further to attract new sales and retain high-profile customers,” added Al-Jaida.
The report further pointed out that the level of outstanding businesses in the country also reduced due to improved supply chains.
The PMI report is compiled from survey responses from a panel of around 450 private sector companies.
It covered the manufacturing, construction, wholesale, retail, and services sectors, and reflects the structure of the non-energy economy according to official national accounts data, said QFC in the report.