The FIFA World Cup will have a favorable economic impact on the next…

(MENAFN– Gulf Hours)

The FIFA World Cup, which kicks off here in the next two weeks, is expected to leave a “favorable” economic impact over the next 12 months, according to the Qatar Financial Center (QFC).
“It is hoped that the sporting event will have a favorable impact on the country over the next 12 months, with sentiment improving to a two-year high,” said QFC Authority chief executive Yousuf Mohamed al-Jaida. , after disclosing the findings of the latest Purchasing Managers Index (PMI) survey.
The Qatar PMI indices are compiled from survey responses from a panel of approximately 450 private sector companies. The panel covers the manufacturing, construction, wholesale, retail and service sectors, and reflects the structure of the non-energy economy according to official national accounts data.
Stressing that the FIFA World Cup will bring a large influx of tourism activity to Qatar, he said sustained increases in production suggest businesses are set for a busy four weeks of transactions.
The latest PMI data revealed that Doha’s non-oil private sector moderated at the start of the fourth quarter, but the growth rate of total economic activity remained marked as companies braced for an influx of sales in Football World Cup prediction.
Survey data indicates that expectations have been boosted by the fast approaching World Cup with sentiment at its highest level in two years in October.
Pricing data signaled improved profitability with a near-record increase in selling costs alongside a marginal increase in input costs.
The data revealed that new orders declined, while buying activity also slowed. Meanwhile, companies have cut their workforces to a record degree in a bid to cut costs.
“While production continued to grow vigorously, companies reported a further slowdown in new orders. Subsequently, businesses were keen to make efficiencies where they could and reduced purchasing activity during the month. Efforts have also been made to reduce staff numbers, which have been declining at the fastest rate in the survey’s history,” al-Jaida said.
The overall PMI is a single-digit composite indicator of non-energy private sector performance. It is derived from indicators relating to incoming orders, production, employment, delivery times from suppliers and purchase stocks.
At 48.4 in October, against 50.7 in September, the latest PMI indicated a moderation in the economy in the private sector excluding energy. The latest result ended 27 successive months of growth. The overall figure was only slightly below the neutral value of 50.
The continued moderation in new orders led non-energy companies in Qatar to reduce their purchasing activity. The rate of decline has been rapid, but milder than the contractions seen at the height of the pandemic.
As far as prices are concerned, the overall prices of intermediate consumption increased for the third month in a row. A further rise in purchasing costs led to the latest increase.
“The rate of inflation, however, was only marginal, in a context of falling staff costs,” the survey said.
Businesses in turn increased their selling prices sharply, and at the third fastest rate in the history of the survey, behind that seen only in the previous survey period and in November 2021. According to comments from the panel, businesses have raised fees to take advantage of increased tourism activity.
“Looking ahead, companies were largely optimistic about their production expectations over the coming year. Companies were hoping that the FIFA World Cup would have a positive impact on production growth,” he said.
The latest PMI data on Qatar’s financial services sector signaled another marked improvement in October, with business activity now increasing every month since July 2021.
The production growth rate has been robust and much faster than the long-term series average.
New orders rose again, as they have since June 2020. The growth rate, however, was the weakest in 15 months.


Legal disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We assume no responsibility for the accuracy, content, images, videos, licensing, completeness, legality, or reliability of any information in this article. If you have any complaints or copyright issues related to this article, please contact the provider above.