RIYADH: Non-oil business activity in Kuwait and Qatar remained in contraction in June as supply disruptions, regional geopolitical tensions and cost pressures weighed on business conditions.
S&P Global data showed Kuwait’s Purchasing Managers’ Index fell to 46.4 in June from 47.2 in May, remaining below the 50-point threshold that separates expansion from contraction for a fourth consecutive month. Qatar’s PMI, meanwhile, improved to a four-month high of 47.6 from 45.9, signaling a slower pace of deterioration in business conditions.
The slowdown in Kuwait’s non-energy sector came against the backdrop of heightened regional tensions following the escalation of the conflict that began in late February, which increased economic uncertainty across the Gulf.
Andrew Harker, economics director at S&P Global Market Intelligence, said: “Although there have been some more positive signs in recent weeks regarding a potential resolution to the conflict in the region, firms in Kuwait continued to feel the effects in June.”
He added: “Price increases and competition for scarce new orders — particularly from abroad — are limiting growth opportunities at present and leaving companies in retrenchment mode.”
