Doha, Qatar: 3 May 2023 – The latest Purchasing Managers’ Index™ (PMI™) survey data from Qatar Financial Centre (QFC) for April indicated a stronger improvement in business conditions as demand for goods and services accelerated. Indices for total activity and the 12-month outlook also remained firmly positive, while employment rose further.

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 PMI rose for the fifth time in six months to 54.4 in April, from 53.8 in March, indicating the strongest improvement in business conditions since July 2022. The latest figure moved further above the long-run trend of 52.2.

The main boost to the headline PMI was from faster growth in new business, while the employment and stocks of purchases components also had positive directional influences. The output component eased slightly since March but remained above its long-run trend, with financial services again a key growth driver.

New business increased at the fastest rate in nine months in April. Companies reported receiving large orders, expanded customer bases and rising demand due to the implementation of new projects. New products were also mentioned as sources of growth.

The 12-month outlook for the non-energy private sector remained strongly positive. The Future Output Index eased further from February's 41-month high but the average for 2023 so far, at 71.7, was well above the long-run trend of 64.6. By sector, confidence in April was strongest among manufacturers.

April data indicated a third successive monthly increase in average wages and salaries, with pay pressures greater than the long-run trend. The Employment Index, tracking the overall level of staffing, rose to a nine-month high, signalling another increase in workforce numbers.

Continuing the trend shown during 2023 so far, average input prices rose in April. That said, inflationary pressures remained modest and broadly in line with the long-run survey trend. Meanwhile, firms increased their charges for goods and services, having cut them in March.

Although stronger new business inflows put pressure on capacity, companies were still able to reduce their levels of outstanding business for the ninth month running in April due to productivity improvements and increased workforces.

QFC Qatar PMI™ vs. GDP

Fastest rise in new business since August 2022

• Financial Services New Business Index rises to 61.3
• Growth of total financial services activity remains strong
• Input prices fall for the first time in six months

The financial services sector in Qatar continued to expand at a marked rate in April as the volume of new business increased for the thirty-fifth consecutive month and at the fastest rate since last August. Overall financial services activity increased for the twenty-second successive month, and at a strong pace, while expectations remained firmly positive.

New business grew for the thirty-fifth consecutive month in April, and the rate of expansion accelerated to an eight-month high. Employment was broadly stable having fallen slightly in March. April data indicated another increase in charges levied by financial services firms, albeit the slowest in three months. Average input costs fell for the first time since last October.

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