Kuwait PMI hits 52.9 in October as input costs accelerate
Kuwait's non-oil private sector PMI rose to 52.9 in October from 52.4 in September
· Last verified: 3 Nov 2026 (S&P Global, Mubasher, Asharq Business)
Summary
- Kuwait's non-oil private sector PMI rose to 52.9 in October from 52.4 in September
- New orders grew at their fastest pace since February, lifted by export demand from neighbouring markets
- Input costs also climbed at the fastest rate since February, squeezing margins into the final quarter
The latest
Kuwait's non-oil private sector expanded at its quickest pace in two months in October, with the S&P Global Purchasing Managers' Index rising to 52.9 points from 52.4 in September, a fourth straight month above the neutral 50 mark. Andrew Harker, economics director at S&P Global Market Intelligence, said the recovery became entrenched during the month as firms succeeded in winning new business.
Details
- The headline number: The index stood at 52.9 points in October against 52.4 in September, according to S&P Global. Readings above 50 indicate expansion; the October figure is the highest in two months and extends the run above neutral to four consecutive months.
- New orders: New business grew at the fastest rate since February 2026, according to the survey. New export orders also rose more quickly, which firms attributed to work secured from clients in neighbouring countries — a rare external contribution to a sector usually driven by domestic demand.
- Stockpiling at a record: Purchasing activity and inventories of production inputs both rose at the sharpest rates in the survey's history. Companies said they moved to secure input needs ahead of expected price increases, pointing to a defensive buying cycle rather than straightforward demand growth.
- Hiring lags: Employment growth remained limited despite staffing levels rising for a third consecutive month. The modest pace of recruitment contrasts with the strength of incoming work, suggesting firms are meeting higher order volumes without a proportionate expansion of their workforces.
- Backlogs build: Outstanding business increased for a fourth straight month, at a strong rate approaching February's record pace, according to the survey. Rising backlogs alongside restrained hiring indicate capacity constraints rather than idle capacity across the non-oil private sector.
- Cost pressures: Input costs rose at their fastest pace since February, the survey found, driven by prices for advertising, machinery maintenance, spare parts and staff. The breadth of the increase points to pressure on several cost lines at once rather than a single commodity shock.
- Output prices: Firms raised their own selling prices at a marked rate, only slightly below the record high of September 2021, according to S&P Global. That suggests a substantial share of higher costs is being passed to customers, though the survey did not quantify how much was absorbed internally.
- The S&P Global view: Harker said the recovery in Kuwait's non-oil private sector became entrenched during October as businesses succeeded in securing new orders. S&P Global did not publish a forecast for the index in the coming months alongside the October release.
Background
The Purchasing Managers' Index is a monthly survey-based gauge of private sector conditions, compiled from responses on output, new orders, employment, delivery times and inventories. A reading above 50 signals expansion from the previous month; below 50 signals contraction. Kuwait's index covers non-oil activity only.
Between the lines
Two of the month's strongest readings pull in opposite directions. Record purchasing and inventory building were tied by firms to expected price increases, so part of October's apparent demand strength reflects cost anticipation rather than new business. With input costs rising at their fastest pace since February and output prices near a four-year high, the gap between what companies pay and what they can charge is the variable to watch for margins.
What's next
The November PMI reading will show whether record stockpiling was a one-off hedge or the start of a trend, and whether backlogs near February's record begin forcing faster hiring after three months of limited employment growth.