Doha, 6 December 2022 - The latest Purchasing Managers' Index (PMI) survey data from Qatar Financial Centre (QFC) indicated faster growth of business activity in Nov. as the FIFA World Cup Qatar 2022 kicked off in the second half of the month.
Wholesale, retail and service providers in particular registered rapid expansions in activity. Moreover, sales prices increased at a series-record rate, with surging tourism demand from the tournament supporting higher rates for hotels, rentals, flights and other services.
The Nov. survey findings also showed that firms were at their most optimistic regarding the 12-month outlook since October 2020, as they sought to capitalise on post-tournament business opportunities.
The Qatar PMI indices are compiled from survey responses from a panel of around 450 private sector companies. The panel covers the manufacturing, construction, wholesale, retail, and services sectors, and reflects the structure of the non-energy economy according to official national accounts data.
The headline Qatar Financial Centre PMI is a composite single-figure indicator of non-energy private sector performance. It is derived from indicators for new orders, output, employment, suppliers delivery times and stocks of purchases.
The Output Index rose to 63.0, linked to retail trade and services was countered by a construction-driven cooling in new orders, as well as shorter supplier lead times and cuts to input stocks as firms looked to save costs.
Non-oil private sector output rose for the 29th consecutive month in Nov. The rate of growth was the fastest since July and well above the long-run survey average. Data broken down by the four broad sectors revealed especially marked growth in wholesale & retail and services, reflecting the positive impact of the FIFA World Cup Qatar 2022.
There was a further cooling of new sales in November, especially in construction, as total activity growth was driven by the completion of existing work. Outstanding business was cleared at the fastest rate since July 2019.
The 12-month outlook for business activity improved further in Nov., as companies looked to capitalize on post-tournament business opportunities. The overall degree of confidence was the highest since Oct. 2020, with construction and service sector firms the most upbeat.
Prices charged for goods and services rose at the fastest rate in the survey history in November, and for the seventh successive month. This partly reflected increased pricing power among firms linked to the FIFA World Cup Qatar 2022TM, particularly in the wholesale & retail and services sectors. Meanwhile, average input prices fell slightly for the first time in four months, reflecting lower staff costs and broadly stable purchase prices.
Purchasing activity was further reduced in November as firms reported sufficient inventory levels. Input stocks fell for the fourth month running and at a faster rate as companies pursued efficiency gains and as supplier performance continued to improve: average lead times were the quickest since September 2020. Employment also declined, most notably in the construction sector.