Kuwait non-oil economy gains speed in October with stronger orders and hiring

Dubai: Kuwait’s non-oil private sector picked up momentum in October, with firms reporting stronger growth in output, new orders and employment as the final quarter began on firmer footing.

The headline S&P Global Kuwait PMI rose to 52.8 from 52.2 in September, signalling a solid improvement in business conditions and a faster pace of expansion than the previous month. The index has remained in expansion territory since early 2023.

Marketing efforts and competitive pricing helped firms secure new business, while better product quality supported demand. New export orders also increased, particularly from neighbouring markets, though at a slightly softer pace than September.

Output rose at a quicker rate, extending a growth run that has continued since February 2023. Hiring also strengthened, marking an eighth consecutive month of staff expansion. However, the pace of job creation remained modest, and many firms noted that staffing levels were not yet keeping up with demand. Outstanding work increased again, rising at the sharpest pace in four months.

Firms raised purchasing and inventory levels to keep up with workloads. Supplier performance improved, reflecting stronger relationships and a push to deliver orders efficiently.

Cost pressures intensified. Respondents cited higher expenses across transport, utilities, staff, marketing and maintenance. Selling prices rose for an eighth straight month, although the increase remained marginal as some firms resisted passing on full cost rises to secure business.

Business confidence strengthened to the highest level since June, supported by expectations of continued marketing activity, competitive pricing and steady demand.

"The October PMI data for Kuwait help to allay any fears that the recent growth slowdown was going to result in a more prolonged soft-patch, with rates of expansion in output, new orders, employment and purchasing all accelerating during the month,” said Andrew Harker, Economics Director at S&P Global Market Intelligence. "The rise in employment was still only slight, however, and insufficient to prevent a further build-up of outstanding business. 

“Firms will likely therefore look to address this in the coming months so that customer requirements can be met in a timely manner."

The stronger October reading points to healthy momentum in Kuwait’s non-oil economy, with firms preparing for a busier period ahead despite higher cost pressures.