S&P Global: Kuwait’s non-oil sector continues strong growth in Dec ’24

Kuwait’s S&P Global Purchasing Managers’ Index (PMI) stood at 54.1 in December 2024, reflecting continued strong growth in the non-oil private sector.

Output and new orders expanded at near-record rates, albeit dropping slightly from November records, with business conditions improving solidly, marking the third-strongest performance since the survey began in 2018.

Key drivers of growth included advertising, competitive pricing, and the influx of visitors for the Arabian Gulf Cup. New orders rose sharply, supported by price discounts and social media marketing, while export orders also saw significant increases.

Despite strong demand, employment growth slowed, with only a marginal rise in hiring. This led to an accumulation of outstanding business for the third consecutive month.

Companies also reduced selling prices for the first time in 16 months, despite a rise in input costs, particularly for advertising, machinery, and transportation.

Looking ahead, businesses remain optimistic, with confidence in the year-ahead outlook strengthening for the fourth month in a row. However, some companies faced challenges due to staff shortages, which hindered their ability to complete orders on time.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama