Kuwait Purchasing Managers' Index Jumps to 53.6 in August

Data from the Kuwait Purchasing Managers’ Index (PMI), published by S&P Global, showed the index, which measures the performance of the non-oil private sector, rising to 53.6 points in August 2026, up from 50.8 points in July, marking the second consecutive month it remained above the neutral 50.0-point threshold.

The report noted that the strong improvement in sector performance continued to approach levels recorded in February last year, prior to regional tensions, driven by a sharp increase in business activity and new orders. Competitive pricing, intensive marketing campaigns, and product quality helped stimulate demand, alongside a recovery in new export orders and secured additional sales with clients in neighboring countries, boosting optimism about economic activity prospects over the next twelve months.

On the employment front, non-oil private sector companies increased their workforce in August for the first time in six months, although hiring pace remained modest compared to the surge in order volumes, leading to a continued buildup of unfinished work.

Conversely, companies intensified purchasing activities to rebuild inventories, recording the fastest growth rate in production input purchases since the survey began in September 2018. This was accompanied by inventory levels reaching an all-time high and supplier delivery times improving at the fastest pace since February.

Meanwhile, the report highlighted rising operational cost pressures, with production input inflation hitting a six-month high, driven by increases in wages, maintenance, marketing, raw materials, and utilities costs, alongside the fastest rise in hiring costs since the beginning of the year. Despite these mounting pressures, companies raised the selling prices of their products and services at a noticeable pace, with some offering targeted discounts to sustain sales growth.