Kuwait’s non-oil private sector maintained its growth in September. The Kuwait PMI reached 52.4 points during the month. However, growth slowed from August’s reading of 53.6 points. Even so, companies continued to report stronger activity and rising demand.
The latest figures kept the index above the 50-point growth threshold. September marked the third consecutive month of expansion. Meanwhile, output increased for the third straight month. New orders also continued to climb during the period.
In addition, new export orders strengthened for a second consecutive month. Their growth reached the fastest pace in seven months. Companies pointed to stronger marketing efforts as one reason for rising demand. Competitive pricing also helped businesses attract additional customers.
Furthermore, companies used advertising and discounts to support new business. Several firms also planned to broaden their product ranges. These efforts helped strengthen expectations for the year ahead. Businesses also expected air travel restrictions to remain absent.
Meanwhile, heavier workloads encouraged companies to increase staffing. Firms also stepped up their purchasing activity during September. Purchasing growth matched August’s rapid pace. That rate represented the strongest level recorded since November 2024.
Notably, the survey began collecting comparable purchasing data in September 2018. September’s inventory growth also reached an important milestone. Purchase inventories increased at their fastest pace in almost two years. Companies partly increased stocks because suppliers offered attractive deals.
At the same time, supplier performance improved considerably during the month. Delivery times showed their strongest improvement since July 2020. Faster deliveries helped companies manage stronger purchasing activity. Therefore, firms gained better support as business workloads increased.
Employment also improved during September, although growth remained modest. Companies increased staffing for the second time within three months. However, some businesses still lacked enough workers for current workloads. Consequently, outstanding work increased for the third consecutive month.
Cost pressures presented a significant challenge for businesses. Input prices recorded their fastest increase since February. Companies faced higher purchasing and staffing expenses during September. They also reported rising advertising, electricity, maintenance, rental, and transportation costs.
Nevertheless, businesses also increased their selling prices during the month. Some companies offered discounts to attract customers and limit price increases. As a result, higher costs did not fully translate into stronger output prices. This approach helped companies remain competitive despite rising expenses.
Business confidence also improved noticeably during September. Confidence reached its highest level in seven months. Companies increasingly believed that the recovery could continue. Moreover, stronger demand supported a more positive outlook.
Andrew Harker, an economics director at S&P Global Market Intelligence, highlighted the improvement. He said companies showed greater confidence in the recovery’s durability. September therefore extended the private sector’s recent expansion. He also pointed to encouraging signals from the latest figures.
According to Harker, historical PMI patterns suggest stronger non-oil economic growth. Those patterns also indicate solid non-oil GDP growth during the third quarter. However, businesses may need additional production capacity to sustain momentum. Hiring could become especially important if workloads continue rising.
The Kuwait PMI survey covers around 350 private-sector companies. It includes businesses from several sectors and different workforce sizes. The survey weights companies according to their contribution to the economy. Therefore, the results provide a broad view of private-sector conditions.
Overall, Kuwait’s non-oil economy entered the final quarter with continued momentum. New orders, output, exports, purchasing, and employment all showed improvement. At the same time, rising costs could pressure business margins. The Kuwait PMI therefore points to continued growth alongside emerging cost challenges.
