Kuwait’s non-oil private PMI slightly down in Jan

Kuwait’s non-oil private sector maintained strong growth momentum at the start of 2025, with business activity and new orders expanding. However, the headline PMI eased slightly to 53.4 in January from 54.1 in December, remaining well above the 50.0 threshold that separates growth from contraction.

Business activity increased sharply, driven by successful advertising campaigns, competitive pricing, and ongoing demand from existing customers. The country’s hosting of the Arabian Gulf Cup also boosted sales. New export orders saw further expansion, supported by demand from neighbouring countries.

Employment growth accelerated to the joint-fastest pace on record, matching the levels seen in June and November 2024. However, despite hiring efforts, firms continued to report a rise in backlogs of work due to strong new business inflows.

Input cost inflation eased to its slowest pace since September 2023, though firms cited higher expenses for advertising, maintenance, spare parts, stationery, and transport. Staff costs also rose as companies offered pay increases and bonuses in response to strong performance.

Firms responded to rising workloads by increasing purchasing activity and inventory levels, though both expanded at a slower pace than in previous months. Meanwhile, suppliers’ delivery times continued to improve, aided by competition among vendors.

Selling prices edged higher after a slight decline in December, though the rate of increase remained modest. Business confidence remained strongly positive, with firms expecting further growth in the coming months, supported by competitive pricing strategies, advertising efforts, and strong customer service.