Doha, Qatar: 4 January 2023 – The latest Purchasing Managers’ Index™ (PMI™) survey data from Qatar Financial Centre (QFC) indicated further rapid growth of business activity in December as the FIFA World Cup Qatar 2022^TM progressed through the month. As was the case in November, wholesale, retail, and service providers in particular registered rapid expansions in activity. These sectors also drove a record overall increase in prices charged for goods and services. Furthermore, the 12-month outlook for business activity strengthened further to the highest since July 2020.  

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 second month running from 48.8 in November to 49.6 in December, pointing to a near-stabilisation in overall non-energy private sector business conditions at the end of 2022. As was the case in November, a rapid rise in activity – the Output Index posted 62.8 on the back of surging retail trade and services – was countered by a construction-driven pause in new work, as well as improving supply chains.

Non-oil private sector output rose for the thirtieth consecutive month in December. The rate of growth was little-changed since November and well above the long-run survey average. Sector data revealed especially marked growth in wholesale & retail and services, reflecting the continued impact of the FIFA World Cup Qatar 2022^TM. Across 2022 as a whole, the Output Index trended at 69.0, by far the highest annual figure in the survey history, compared with a long-run trend of 54.8.

Although there was a further pause in new business, particularly in construction, the respective index rose for the second month running in December from October's 28-month low. Meanwhile, firms were able to reduce their outstanding business for the fifth month running.

December data indicated a further slight fall in average input prices but a record rate of charge inflation, pointing to improving profitability. Charges rose especially sharply in the wholesale & retail and services sectors, linked to tourism demand from the FIFA World Cup Qatar 2022^TM. Efforts to control costs were also in evidence as workforces and purchasing were trimmed further. Companies were keen to optimise input stocks, which were reduced for the fifth successive month.

Companies widely reported that they expect a positive legacy from the FIFA World Cup Qatar 2022^TM, with a number of new projects lined up and a permanent boost to tourism. Output expectations for the next 12 months were the strongest in over two years.

QFC Qatar PMI™ vs. GDP

Growth of financial services activity accelerates further

• Activity expands at fastest rate in four months in December
• New business and future activity indices also rise to four-month highs
• Charges levied rise for first time in six months

The financial services sector in Qatar recorded another substantial rise in business activity in the final month of 2022, and one that was the fastest in four months. The current growth sequence was extended to 18 months, and the pace of expansion in the latest period was among the strongest in the near-six year series history.

New business also grew at the strongest rate in four months. Meanwhile, employment rose at the fastest pace since July and the 12-month outlook for activity strengthened.

Input prices paid by financial services companies rose only fractionally in December, while charges levied for services increased for the first time in six months.

Click here to view the report