Qatar PMI: Non-energy sector growth from tourism demand and financial services

Qatar PMI: Non-energy sector growth from tourism demand and financial services

Qatar’s non-energy sector private sector saw a further build-up of growth momentum in May in part due to tourism and demand for financial services.

The Gulf state’s Purchasing Managers’ Index rose to 55.6 in May, up from 54.4 last month, with anything above 50.0 indicating that business conditions are improving.

Report authors Qatar Financial Centre (QFC) said it was the strongest improvement since July 2022, above the long-run trend of 52.3.

Yousuf Mohamed Al-Jaida, CEO, QFC Authority, said: “Financial services continued to outperform the wider economy, with its key indices for activity and new business registering 61.4 and 61.8, respectively.

“Financial services firms also raised their charges, in contrast to little change across the non-energy sector as a whole.”

QFC said total financial services activity rose for the 23rd month running and at the strongest rate in three months.

Expectations for activity strengthened and financial services firms raised employment. Data for the month also indicated improving margins at financial services firms, as charges were raised further but input costs were broadly flat on average.

Across the non-energy private sector, companies reported signing new contracts with both existing and new customers, alongside new product offerings and tourism demand.

Total business activity rose further in May, QFC said, and output