RIYADH: As demand was disrupted by regional war, Qatar’s Purchasing Managers’ Index dropped to 38.7 in March from 50.6 in February, indicating a significant contraction in the non-energy private sector. The S&P Global PMI experienced one of the sharpest declines in business conditions in recent years, falling well below the 50 barrier that divides expansion from contraction.
Companies reported delays, operational interruptions, and hesitation among clients and investors to commit to new projects, contributing to a severe reduction in new business that shrank at the highest rate since the poll started in 2017.
Growth in Qatar’s non-energy industry has slowed in the face of escalating tensions brought on by the US and Israel’s late-February assault against Iran. Flight operations and shipping routes have been significantly interrupted by the conflict, and economic uncertainty has increased throughout the Gulf area.
PMI readings were inconsistent throughout the region, with Egypt declining to 48 from 48.9, Kuwait dropping to 46.3 from 54.5, and the UAE softening to 52.9 from 55.”The PMI data for March flagged an immediate impact of the outbreak of war in the Middle East on the Qatari non-energy economy.” The PMI reached its lowest point since the pandemic’s early stages in 2020, underscoring the extent of the region’s disruption caused by warfare.
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