S&P Global data showed a strong decline in the Qatar Purchasing Managers’ Index, which tracks the performance of the non-oil private sector, in August last year, under pressure from slower growth in aggregate activity, new orders and purchasing activity.
In a report on Wednesday, the corporation said that the value of the index of purchasing managers in Qatar fell from 61.5 in July last year to 53.7 points in August.
The rise of the index above the level of 50 points indicates an expansion of activity, and a decrease below – a reduction.
According to a report released in cooperation with the Qatar Financial Center (government), the growth rate of aggregate activity, new orders and buying activity decreased last month, but remained high compared to the historical average.
The report cited a decline in business in progress, forcing Qatari non-oil companies to cut their workforce to maintain profit margins.
Input inflation slightly increased during the month, but improved demand levels helped Qatari companies raise prices for their goods and services at the highest rate in eight months in August 2022.
There were signs of non-utilization of the production capacity of Qatari companies at full capacity, for the first time in 23 months, the volume of work in progress decreased.
Qatari companies indicated that the number of their current employees is sufficient to meet new incoming requests.
The continuous increase in new orders prompted Qatari companies to step up procurement activities in August 2022.
In terms of prices, input inflation slightly increased in August 2022 after declining in the previous month.
The confidence of Qatari companies in business growth improved over the next 12 months, and the level of confidence was the highest in almost a year.
Source: El Iktisad
