Kuwait: Kuwait PMI shows solid non-oil private-sector growth in March
The S&P Global Kuwait PMI rose to 53.2 in March from 52.7 in February. As a result, the index moved further above the 50.0 no-change threshold, and signaled a faster improvement in non-oil private sector operating conditions compared to the previous month.
Key drivers behind the latest PMI reading included a combination of advertising efforts and competitive pricing, which led to the fastest rises in business activity and new orders since July 2020. Despite the strong growth in new orders, employment increased only fractionally, leading to a continued build-up of backlogs of work for the 14th consecutive month. Efforts to meet customer demands resulted in marked increases in purchasing activity and stocks of inputs, while suppliers’ delivery times shortened to the least extent since July 2022.
Inflationary pressures were evident, with the rate of overall input cost inflation reaching its highest since July 2020, driven by rapid increases in purchase prices and the sharpest rise in staff costs on record. Companies responded to these rising input costs by raising their selling prices at the fastest rate in nearly two and a half years. Business confidence strengthened in March as around one-third of respondents predicted an increase in activity over the next 12 months.