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How Kuwait and Qatar’s non-oil private sectors performed in November: Purchasing manager indices (PMI) tracking non-energy sectors in Kuwait and Qatar told a similar tale with both countries holding well above the 50.0 mark for healthy growth.
REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction.
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Kuwait sees record highs across the board: Kuwait’s PMI surged in November driven by new orders, high output rates and a boost to purchasing activity, according to S&P Global’s Kuwait PMI. The country’s headline figure jumped to 55.9 in November, up from 52.7 in October, growing at one of the strongest rates on record.
New orders grew at the fastest pace since 2020 buoyed by competitive pricing and successful advertising campaigns. Output also spiked due to an increase in sales, with firms attributing this to extended working hours. Purchasing activity rates were on the uptick to meet healthy demand, with input purchases and inventories rising at the steepest pace on record.
Hiring spree: Hiring rates rose at the fastest pace on record, with companies taking on extra staff for the third consecutive month. A buildup of backlogs grew due to the high level of demand, with the rate of job creation unable to match pace. Staff costs also rose on the back of overtime pay to keep up with orders.
Input inflation remained stable experiencing little change from last month, despite companies noting a jump in prices for a range of products, including machinery, maintenance and marketing. Output inflation rose to a four-month high, yet remained within the average level.
More of the same in Qatar: Qatar’s non-energy private sector signalled sustained growth in business conditions in November with boosts to new orders, output and employment, according to a Qatar Financial Center PMI. The nation’s headline number remained steady, rising only marginally to 52.9 in November, from 52.8 in October.
A surge in appetite for goods and services continued with expansion for the eleventh consecutive month. Outputs grew at a fast rate, as stock purchases reached a survey-record high and a slight improvement in suppliers delivery times.
Once again, hiring is up: Employment rates rose at the fastest rate on record, in line with a trend of sharp rises over the past three months. Wage inflation also grew at the third-quickest pace on record, with firms upping salaries to retain skilled and experienced workers. Input cost pressures softened from last month’s four-year high but remained high, while output costs dipped for the fourth month running, as companies look to boost their competitive edge.
Overall sentiment remained strong: Qatar bares an optimistic outlook for the next year, with firms confident that Qatar’s strong performance will attract international investment. In Kuwait business optimism rose for the third consecutive month, hitting its highest level since June.
