Kuwait non-oil private sector growth continues as PMI hits 52.4 points
- Business confidence reaches seven-month high as firms increase hiring and purchasing
Kuwait’s non-oil private sector continued to expand in September, with marketing efforts and competitive pricing supporting new orders and business activity, while business confidence rose to its highest level in seven months, according to the latest S&P Global Kuwait Purchasing Managers’ Index (PMI).
The PMI stood at 52.4 points in September, remaining above the 50-point threshold separating growth from contraction for the third consecutive month, although the pace of improvement eased from 53.6 in August. Both output and new orders increased for a third straight month, while new export orders rose for a second month at their fastest rate in seven months.
Successful marketing campaigns and competitive pricing were identified as key drivers of new business. Advertising, discounts, plans to expand product ranges and expectations that air travel restrictions will not return also supported companies’ outlook for the next 12 months. Rising workloads prompted companies to increase staffing and input purchasing.
Purchasing activity maintained the rapid pace recorded in August, matching the strongest rate since data collection began in September 2018, also recorded in November 2024. Purchase inventories rose at their fastest pace in nearly two years, partly as companies took advantage of supplier offers.
Supplier performance also improved significantly, with delivery times recording their biggest improvement since July 2020. Employment increased for the second time in three months, although only modestly, while backlogs of work rose for a third consecutive month as some firms said staffing remained insufficient to meet workloads.
Cost pressures, however, intensified. Input prices recorded their fastest increase since February, reflecting higher purchase and staff costs as well as increased expenses for advertising, electricity, machinery maintenance, rent and transportation. Output prices also increased, but discounts by some companies limited the rise in selling prices.
S&P Global Market Intelligence Economics Director Andrew Harker said Kuwaiti companies were showing growing confidence in the sustainability of the recovery, with September marking another month of expansion. He said the historical relationship between the PMI and official data pointed to strong growth in non-oil GDP during the third quarter.
Harker added that rising workloads indicated activity could accelerate if companies expand production capacity, particularly through hiring, making employment trends important to monitor in the coming months. The Kuwait PMI is compiled by S&P Global from surveys of purchasing managers at around 350 private-sector companies, with the sample covering different sectors and workforce sizes according to their contribution to GDP. Data collection began in September 2018.
