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Qatar’s non-energy private sector maintained its expansion stance, despite the Purchasing Managers’ Index (PMI) slipping below trend level from highs recorded in June.
The headline Qatar Financial Centre PMI registered 51.3 in July, down from June’s 23-month high of 55.9. The figure was also below the long-run trend level of 52.3, maintained since April 2017.
Output and new orders both grew in line with their long-run survey trends, while data indicated that companies remained confident regarding the 12-month outlook. The level of incoming new orders expanded based on strong reputations, customer trust and high-quality goods and services.
Overall cost pressures were muted as higher purchase prices were partly offset by lower staff costs. Prices charged for goods and services were broadly stable.
Business confidence remained steady with firms reporting on planned openings in new locations, adoption of new technologies, investments in training and latest marketing strategies.
Private sector employment in Qatar was slightly lower in July compared with June, mainly emanating from the construction sector. That said, only 6% of firms reported lower staffing during the month.
Financial services
Qatar’s financial services recorded further expansion in total business activity and new contracts in July, albeit at softer rates than in June. The seasonally adjusted Financial Services Business Activity and New Business Indexes posted 56.2 and 57.2 respectively, above the figures for the private sector economy.
Financial services companies also remained optimistic regarding the 12-month outlook, with sentiment unchanged since June at the highest level since July 2023. Meanwhile, employment growth was maintained for the sixteenth successive month.
In terms of prices, average charges set by financial services companies rose at the second-strongest rate since April 2023. Meanwhile, average input prices rose the most since June 2022
QFC Authority CEO, Yousuf Mohamed Al-Jaida, said July’s PMI was in “growth territory”, despite slipping below trend level.
"Growth momentum eased at the start of the third quarter, though this correction was perhaps to be expected in the context of a surge in June when the PMI posted its second-highest level in the survey history when excluding the post-pandemic rebound and lead-up to the 2022 World Cup,” Al-Jaida said. “Financial services remained a bright spot in the economy, registering further sharp growth in new business and activity.”
(Writing by Bindu Rai, editing by Seban Scaria)