Kuwait’s non-oil private sector growth steady in July – PMI

Kuwait’s non-oil private sector showed steady growth in July, as indicated by the S&P Global Kuwait PMI, which posted a headline figure of 51.5, slightly down from 51.6 in June. New orders rose solidly, driving output and purchasing, though employment remained unchanged due to difficulties in finding skilled staff.

Competitive pricing contributed to the solid rise in new orders and a modest increase in business activity. Despite a sharp rise in input costs, including record staff cost inflation, output prices increased only slightly. New export orders grew at a record pace, thanks to demand from neighbouring countries.

The PMI data reflects responses from about 350 private sector companies across various sectors, including manufacturing and services. While input prices continued to rise sharply, the pace of inflation eased to its slowest this year. Staff costs surged, but employment levels were stable due to challenges in sourcing qualified workers, leading to an accumulation of backlogged work.

Overall, firms in Kuwait are optimistic about future output increases, though sentiment has softened to its lowest point since February.

Attribution: S&P Global Kuwait PMI