PMI slips to 52.2; Kuwait’s non-oil growth weakest in a year, confidence improves

The latest S&P Global Kuwait Purchasing Managers’ Survey (PMS) showed that Kuwait’s non-oil private sector continued to expand in September, though at a slower pace than in previous months. The PMI fell to 52.2, down from 53 in August, marking the lowest reading in a year.

Despite the moderation, the index stayed above the 50 thresholds—which separates growth from contraction—for the 13th consecutive month, signaling continued business expansion. The latest data reflected weaker increases in output and new orders, both of which eased to their slowest rates since February. Companies attributed the ongoing growth to effective promotional campaigns, competitive pricing, and targeted advertising that continued to attract new customers.

In contrast to the slowdown in domestic activity, new export orders recorded their fastest growth in three months, supported by discounting strategies that enhanced competitiveness in external markets.

Employment growth remained modest in September as businesses focused on cost control, leading to a continued backlog of work for the twelfth straight month.

Meanwhile, purchasing activity and inventories rose at the weakest pace in six months, with some firms using favorable prices to secure future supplies. Supplier delivery times showed only slight improvement, marking the smallest gain in four and a half years due to staffing shortages among vendors.

Inflationary pressures stayed relatively mild. Although input costs rose slightly faster than in August—driven by higher maintenance, transport, utilities, and staff costs—the increase was still among the slowest since late 2022. Output prices rose for the seventh consecutive month as firms sought to preserve profit margins, though the rate of price inflation remained subdued.

Despite the softer growth momentum, business sentiment improved in September. Firms expressed optimism about future production, supported by competitive pricing, new product development, strong customer service, and greater brand visibility through marketing and word-of-mouth.

“Companies remain confident that their future projects will be sufficient to sustain rising production over the next year,” said Andrew Harker, Director of Economics at S&P Global Market Intelligence. “However, the slowdown in growth is unlikely to improve the employment situation, as firms remain cautious about adding to their workforce despite ongoing backlogs.”

Follow The Times Kuwait on
X, Instagram and Facebook for the latest news updates