Kuwait’s PMI hits 4-year high, reports S&P Global

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KUWAIT CITY, June 5: The main Purchasing Managers’ Index (PMI) for Kuwait, affiliated with the S&P Global group, reported that Kuwait experienced its strongest production growth in four years last May. The non-oil sector saw sharp and rapid increases in new business and production, levels not seen since the recovery period following the easing of COVID-19 restrictions in mid-2020, reports Al-Rai daily. According to the S&P Global report, the PMI for Kuwait in May 2024 rose to 52.4 points, up from 51.5 points the previous month.

This increase reflects improved business conditions in the non-oil private sector for the sixteenth consecutive month, indicating a rise in business confidence to the highest levels seen since early 2024. The data showed a sharp expansion in new orders, reaching the highest rate since the study began in September 2018, excluding the peak seen in June and July 2020 after the easing of COVID-19 restrictions. New export orders also increased at a faster pace in the middle of the second quarter of the year.

Commercial activity followed a similar trend, with significant and rapid growth last month. Production has been rising for the past sixteen months, with evidence of expansion in both production and new orders. The increase in new orders prompted some companies to hire additional employees, though the pace of job creation was marginal. Employee shortages led to a significant accumulation of unfinished business, marking the steepest increase in the study’s history.

Procurement costs continued to rise sharply due to increased spending on advertising and higher prices for computer equipment, raw materials, and spare parts. However, the pace of inflation fell to its lowest level since the study began. Employment costs also continued to rise. Production price inflation remained modest in May, consistent with the previous month. Some companies raised prices in response to higher production costs, while others offered discounts to customers. Companies also increased purchasing activity and stockpiles of supplies

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