Doha stores are preparing themselves for World Cup sales (Getty)
register PMI Last May, Qatar recorded its highest reading in the history of the study, recording 67.5 points, compared to 63.6 points last April, supported by the record rise in new requests, due to the growth of tourism activity and the organization of the FIFA World Cup (World Cup 2022). lifting the restrictions imposed by the Corona pandemic, and reducing the time taken for delivery.
The data of the Purchasing Managers’ Index study of the Qatar Financial Center revealed a record improvement in commercial activities For non-energy Qatari private sector companies in the middle of the second quarter of this year.
The reading of the PMI showed the highest overall improvement in the commercial activity of the Qatari private sector companies that are not related to energy since the study began more than five years ago, as indicators of production, new orders, inventory of purchases, and backlog of unfinished business rose at the fastest rates since the study began in April. 2017, while the employment index rose at a record rate, and the buoyant market conditions boosted the level of corporate confidence in May compared to the low level of confidence last April.
The study showed that the manufacturing sector recorded the highest growth rate in the production index in May 2022, followed by the services, wholesale and retail sectors and construction, respectively.
The increase in the required production requirements prompted Qatari companies to intensify their purchasing activities at a record rate. At the same time, inventory of purchases rose at the fourth highest rate in the study’s history.
The level of confidence of Qatari companies also improved, and positive expectations were made regarding the rise in the level of production during the next twelve months. The main factors behind the improvement in confidence included the upcoming FIFA World Cup and hopes for the growth of tourism activity. highest in May.
In terms of prices, inflationary pressures exacerbated again, with reports indicating a rise in the prices of materials and other production requirements, and these pressures increased in the middle of the second quarter of this year, and the average prices of production inputs increased during the past ten months, as the rate of inflation of production inputs was the highest Since August 2020. In response, Qatari companies decided to raise the selling prices of their goods and services for the first time in four months.
Commenting on the data contained in the statement, Youssef Mohamed Al-Jaida, CEO of the Qatar Financial Center Authority, said that Qatari companies have provided positive expectations regarding the continued improvement of demand conditions with the approaching start of the World Cup, expecting that the rise in unfinished business will support continued growth. In the production indicator during the summer, because Qatari companies are actively working to complete the work that has accumulated during the past year or so.
He pointed out to the emergence of positive signs with regard to supply, as Qatari companies indicated the timely delivery of materials and other production requirements, which should enhance the level of production during the year, while inflationary pressures on prices exacerbated again, and Qatari companies benefited from the revived market conditions and decided Increasing the prices of its goods and services to maintain its profit margins.
The QFC Core Purchasing Managers’ Index is a single-digit composite index indicating the performance of non-energy-related private sector companies in Qatar. This indicator is calculated on the basis of indicators of new orders, production, employment, supplier delivery dates and inventory of purchases.