Qatari financial services companies recorded a further strengthening in growth of total business activity and new contracts in June. The seasonally adjusted Financial Services Business Activity and New Business Indexes rose to 13- and nine-month highs of 61.1 and 59.2, respectively, well above their long-run trend levels since 2017.
Companies were also increasingly optimistic regarding the 12-month outlook, with sentiment the highest since July 2023. Meanwhile, employment growth was maintained for the fifteenth successive month.
In terms of prices, average charges set by financial services companies rose at the strongest rate since April 2023, following a marginal rise in May and discounting during the first four months of 2024. Meanwhile, average input prices fell slightly for the third time in four months.
Chief Executive Officer of QFC Authority Yousuf Mohamed Al Jaida commented saying: “The PMI ascended to its highest level in almost two years in June, boosted by faster growth of output and new busines
s and a renewed rise in inventories as firms remained optimistic in the 12-month outlook. Additionally, the June figure of 55.9 was higher than in all pre-pandemic months in the survey history, except for October 2017 (56.3). Growth has now accelerated five times in the first half of 2024 as the non-energy economy has rebounded from a moderation in the second half of 2023.
“Moreover, the latest results point to a more broad-based upturn as manufacturing and construction have caught up with the services, wholesale and retail sectors.” “The acceleration in business expansion has not been accompanied by rising price pressures. On the contrary, companies engaged in discounting in June to further boost sales.” Purchasing Managers’ Index (PMI) surveys are now available for over 40 countries and for key regions including the Eurozone. They are the most closely watched business surveys in the world, favoured by central banks, financial markets and business decision makers for their ability to provide up-to-date, acc
urate and often unique monthly indicators of economic trends.
The Qatar Financial Centre PMI is compiled by S and P Global from responses to questionnaires sent to purchasing managers in a panel of around 450 private sector companies. The panel is stratified by detailed sector and company workforce size, based on contributions to GDP. The sectors covered by the survey include manufacturing, construction, wholesale, retail, and services.
Source: Qatar News Agency