Kuwait’s Purchasing Managers’ Index (PMI) climbed to 53.5 in July from 53.1 in June, according to data published Tuesday by S&P Global Ratings. The reading reflects continued improvement in non-oil private sector activity, marking 11 consecutive months of business condition enhancement.
The rise was primarily driven by a sharp and accelerating increase in new orders, supported by advertising efforts and price discounts. Though output growth remained robust, it was the slowest in four months. Export orders also increased, albeit at the softest pace in three months, reports Al-Rai daily.
Despite the rise in demand, employment levels held steady in July after a record surge in June. Some firms cited cost concerns and project completion pressures as reasons for hiring delays. As a result, backlogs of work accumulated slightly, though the increase was the weakest since January.
Inflationary pressures eased at the start of Q3, with some companies reporting limited ability to pass on higher input costs due to price reductions offered to attract business.
Firms remained upbeat about future production, driven by competitive pricing and marketing plans, including digital outreach. However, optimism dipped to a three-month low.
Andrew Harker, Director of Economics at S&P Global, noted that the non-oil private sector maintained its momentum into the second half of 2025. He highlighted that while inflation softened, hiring stagnated, leading to mild backlogs. Harker expressed confidence in future growth and anticipated a rebound in employment activity in the coming months.
