S&P Global: Kuwait non-oil private sector down in August ’24

Kuwait’s non-oil private sector experienced a slowdown in August, with output growth easing to its lowest point in 19 months. The S&P Global Kuwait Purchasing Managers’ Index (PMI) fell to 49.7, down from 51.5 in July, indicating a marginal decline in sector health. This was the first time the PMI dropped below the 50.0 no-change mark in over a year and a half.

Despite continued growth in business activity and new orders, both metrics expanded at their slowest rates in this period. Employment decreased for the first time in four months, with firms reducing staffing levels due to competitive pressures.

Input cost inflation softened, contributing to slower increases in output prices, which remained the lowest of the year. The slowdown in new orders was attributed to heightened competition and some firms losing business to cheaper alternatives. Export orders from neighboring countries showed more resilience compared to total new orders.

Andrew Harker, Economics Director at S&P Global Market Intelligence, noted that while the data suggest only a temporary blip rather than a prolonged slowdown, challenges remain. Firms face squeezed profit margins and increased input costs, impacting business confidence and prompting cautious outlooks for the future.

Attribution: S&P Global Kuwait PMI®

Subediting: M. S. Salama