RIYADH: Qatar’s Purchasing Managers’ Index fell to 38.7 in March from 50.6 in February, signaling a sharp contraction in the non-energy private sector as regional conflict disrupted demand.
The S&P Global PMI dropped well below the 50 threshold that separates expansion from contraction, marking one of the steepest deteriorations in business conditions in recent years.
The decline was driven by a sharp fall in new business, which contracted at the fastest pace since the survey began in 2017, as companies reported delays, suspended operations and reluctance among clients and investors to commit to new projects.
The slowdown in Qatar’s non-energy sector growth is occurring against the backdrop of rising escalation triggered by the outbreak of war between the US and Israel against Iran in late February. The conflict has severely disrupted flight operations and shipping routes, while increasing economic uncertainty throughout the Gulf region.
Across the region, PMI readings were mixed, with the UAE easing to 52.9 from 55, Kuwait falling to 46.3 from 54.5, and Egypt slipping to 48 from 48.9.
