Kuwait: Private-sector PMI falls in August
The S&P Global Kuwait Composite Purchasing Managers’ Index (PMI) fell to 49.7 in August from 51.5 in July. As a result, the index moved below the 50.0 no-change threshold, and signaled a deterioration in non-oil private-sector operating conditions compared to the previous month.
The decrease in the PMI was primarily due to a slowdown in output growth, which hit a 19-month low, and an only-marginal rise in new orders amid strong competitive pressures. Additionally, employment saw a decrease for the first time in four months. However, new export orders saw a marked increase, driven by sales to clients in neighboring countries.
Output prices increased at the softest pace so far in 2024, due to firms offering discounts to secure new business, despite facing sharp rises in purchase prices for various items including advertising and transportation. Finally, competitive pressures caused business sentiment to drop to a seven-month low in August.