Kuwait: Private-sector growth softens in April
The S&P Global Kuwait PMI fell to 51.5 in April from 53.2 in March. As a result, the index remained above the 50.0 no-change threshold, but signaled a softer improvement in non-oil private sector operating conditions compared to the previous month.
Competitive pricing strategies and successful advertising activities supported further expansions in new orders and output. Despite this, the rates of increase softened from March. Employment levels decreased for the first time in eight months as companies aimed to minimize costs. Additionally, the supply chain saw a buildup of backlogs due to a reduction in workforce numbers and a shortage of available raw materials.
Efforts to limit price increases to customers led to the softest pace of output price inflation in three months. This approach was taken despite a rise in purchase prices which was the sharpest recorded outside of the pandemic period. Business sentiment remained strong, albeit slightly lower than in March, with companies focusing on competitive pricing and marketing as key strategies for future business expansions.
Andrew Harker, economics director at S&P Global Market Intelligence, said:
“Growth continued to be predicated, at least in part, on competitive pricing. This put pressure on margins given rapidly increasing input costs, however […]. There are clearly risks that this will prove unsustainable and so companies will be hoping that either cost inflation moderates or that demand strengthens sufficiently to reduce the need for discounting in the months ahead.”