The latest data from the Qatar Financial Center Purchasing Managers’ Index study for March 2023 revealed that business conditions continued to strengthen in light of the momentum witnessed by demand. This has led to an acceleration in the growth of overall business activity, higher employment rates and an improvement in business expectations for Qatari companies over the next 12 months.
Mr. Yousef Mohamed Al-Jaida, CEO of the Qatar Financial Center Authority, said: “The financial services sector continued to be a major catalyst in achieving overall growth in March 2023, with growth rates in the production and new business indicators remaining above the average in all sectors, and the services business activity index increased.” Finance to 60.5».
Commercial activity of non-energy private sector companies in Qatar witnessed growth at the end of the first quarter of 2023, with sharper increases in the production and new orders indicators. Both sub-indicators were above the average of the long-term study, which began more than six years ago. The headline PMI rose to an eight-month high, due to a rise in the employment index.
As for future expectations, the future activity index decreased in March after recording its highest level in 41 months in February by 82.7 points, but the average index during the first quarter of 2023 was 77.0 points, which represents the best quarterly performance since the third quarter of 2019.
The QFC Core Purchasing Managers’ Index is a single-digit composite indicator of the performance of non-energy private sector companies in Qatar. The headline PMI for Qatar is calculated on the basis of new orders, production, employment, suppliers’ delivery times and inventories of purchases.
The rise in the main PMI was attributed to the continued growth in the production and new business indices, which rose at rates stronger than their long-term average rates, after the increases recorded in January 2023. Corporate data also revealed the attraction of new customers, the recovery of tourism activity, investments and successful marketing campaigns. The indicators of production and new orders witnessed the highest growth rates in the wholesale and retail sector, and the services sector. The rise in the employment index to its highest level in eight months contributed to the rise in the headline PMI.
March data indicated a further rise in average wages and salaries, despite the decrease in the personnel costs index from its highest level in 17 months in February 2023. The employment index, which tracks the total number of employees, rose to its highest level in eight months, indicating an increase in the number of employees. workforce.
Overall cost pressures have continued to decline since the beginning of the year to moderate levels, indicating a slight increase in purchase prices. Meanwhile, Qatari companies cut the prices of their goods and services for the second time in three months, albeit at a slight pace.
Qatari companies reduced the amount of unfinished business they have for the eighth consecutive month in March 2023, despite the continuous increase in new business. This indicated an increase in the number of employees and an improvement in the productivity of Qatari companies.
Qatar’s financial services sector continued to grow at a remarkable rate in March as new business volume rose sharply for the 34th consecutive month. The overall activity of the financial services sector increased for the twenty-first consecutive month and at a rapid pace, while expectations declined again compared to the last reading in January 2023, but remained high.
New business grew for the 34th consecutive month in March 2023 and the growth rate remained strong, although it eased to a two-month low. The employment index was slightly lower than February 2023. March data indicated a strong rise in prices and fees for financial services companies, albeit at a rate lower than the record rate recorded in February 2023. There was no significant change in the costs of production inputs during March 2023. .
