Key insights
- Kuwait's non-oil private sector activity continued to contract in May, though at a slower pace than April, reaching a three-month high of 47.2 on the PMI. While output and new orders declined due to regional conflict and competition, business confidence improved. However, falling export orders, job cuts, and a significant drop in purchasing activity suggest ongoing economic weakness. The impact on US markets is indirect, primarily through potential global economic slowdown signals and commodity price volatility stemming from regional instability.
Investing.com -- Kuwait’s non-oil private sector contracted for another month in May, though the pace of decline eased from April as companies reported some early signs of improvement despite ongoing regional conflict.
The S&P Global Kuwait Purchasing Managers’ Index rose to 47.2 in May from 46.3 in April, marking a three-month high. The index remained below the 50.0 threshold that separates growth from contraction.
Output and new orders both continued to fall during the month, affected by regional war and competitive pressures. The rates of decline were weaker than those recorded in April, as advertising campaigns and promotional offers helped boost activity in some cases.
New export orders fell rapidly, with the conflict harming international demand. The closure of the border with Iraq negatively affected new business from abroad, according to survey respondents.
Business confidence improved sharply to a three-month high in May. Some firms maintained concerns about the ongoing impact of the war in the region.
Companies reduced employment for the third consecutive month, though the pace of job cuts remained modest. Firms continued to work through outstanding business at a solid rate.
Non-oil companies lowered their purchasing activity and inventories during May. Purchasing activity decreased at the fastest pace since April 2020, while the fall in input stocks was the largest since the survey began in September 2018.
Suppliers shortened delivery times in May, the first improvement in three months, as demand for inputs remained weak.
Input costs increased for the first time since the conflict began. Companies reported higher spending on advertising, rent and spare parts. The rate of inflation was relatively modest.
Firms continued to raise their selling prices, extending the current period of inflation to 15 months. The pace of increase was modest and unchanged from April.
Data were collected from May 12-22, 2026.
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