Qatar’s Non-Oil Private Sector Sees Boost in Commercial Activity in May -1-

Faster growth of output and new orders was reflected in another increase in employment. Hiring activity was linked to company development goals, including efforts to speed up the delivery of high-quality services and to gain staff experienced in new technologies. Demand for inputs rose in May, as purchasing activity increased at the second-fastest rate in ten months. Lead times continued to improve, however, as firms reported building supplier relationships. Input stocks fell for the fifth time in six months as output growth accelerated. Cost pressures were broadly stable as average purchase prices declined, offsetting higher wages. Prices charged for goods and services increased for the second time in the past seven months, but at a slower rate than the previous hike in March. Qatari financial services companies recorded much faster growth in volumes of total business activity and new contracts in May. The seasonally adjusted Financial Services Business Activity and New Business Indexes rose to 12- and ei ght-month highs of 60.9 and 59.1, respectively, well above the equivalent indices for the non-energy private sector as a whole. Companies were also increasingly optimistic regarding the 12-month outlook, with confidence the highest since last July 2023. Meanwhile, employment growth was maintained for the fourteenth successive month. In terms of prices, average charges set by financial services companies were broadly unchanged since April, following a four-month sequence of discounting. Meanwhile, average input prices rose slightly and for the first time in three months. Yousuf Mohamed Al Jaida, Chief Executive Officer, QFC Authority, said, "The May results clearly indicate that the non-energy private sector has moved up a gear as we approach the halfway point of 2024. Growth rates for output and new orders accelerated notably, and companies became more optimistic regarding the next 12 months. "Both the wholesale and retail and the services sectors continued to drive expansion in May, and financial service s remained a bright spot. "Although there was a rise in output prices in May, inflationary pressures broadly remained in check and suppliers delivery times continued to improve." Source: Qatar News Agency