Kuwait’s non-oil private sector recorded stronger business activity in October 2026, supported by rising customer demand, increased new orders, and improving export opportunities. The latest Purchasing Managers’ Index (PMI) data from S&P Global indicates that business conditions continued to improve, reflecting a strengthening recovery across the country’s non-oil economy.
Kuwait’s headline PMI increased to 52.9 in October, compared with 52.4 in September. This marked the fourth consecutive month that the index remained above the 50-point threshold, which separates expansion from contraction.
The improvement indicates that companies are experiencing stronger demand and increasing production activity despite rising operating costs and broader regional economic uncertainties.
New Orders Reach Their Fastest Growth Since February
One of the most significant developments in October was the acceleration in new orders. New business increased at its fastest pace since February 2026, supported by stronger customer demand and improved commercial opportunities.
Companies also reported faster growth in new export orders, with businesses securing additional work from customers in neighboring countries. This development highlights the growing contribution of regional trade to Kuwait’s non-oil business environment.
Businesses attributed the increase in demand partly to marketing campaigns, competitive pricing strategies, and the introduction of new products. These efforts helped companies attract customers and strengthen their market positions.
Andrew Harker, Economics Director at S&P Global Market Intelligence, noted that Kuwait’s non-oil private sector recovery became more established in October as companies secured additional orders and increased output.
Companies Increase Purchasing and Production
Stronger demand encouraged businesses to increase purchasing activity and build inventories during October. Purchasing activity and stocks of purchases recorded their strongest increases since the survey began in September 2018.
Companies increased their inventories partly to prepare for higher future input costs and maintain sufficient supplies for ongoing operations.
Output also increased for the fourth consecutive month, with businesses responding to higher workloads by expanding production and strengthening operational activity.
However, employment growth remained relatively modest despite the improvement in business conditions. Although companies continued hiring, the pace of job creation was limited compared with the increase in incoming orders.
Rising Costs Remain a Concern for Businesses
Despite stronger business activity, increasing operating expenses remain a challenge for Kuwaiti companies. Input costs rose at their fastest pace since February, reflecting higher spending on advertising, machinery maintenance, spare parts, and employee wages.
Businesses responded to these pressures by increasing their selling prices. Output price inflation also remained elevated, although the rate was slightly below the record level reported in September 2021.
The combination of rising demand and higher operating expenses could influence business profitability in the coming months. Companies will need to balance competitive pricing with effective cost management to sustain their growth.
Business Confidence Improves
Business confidence among Kuwait’s non-oil companies improved for the fourth consecutive month, reaching its highest level since February 2026.
Companies expressed optimism about future output, supported by expectations of stronger customer demand, continued marketing investments, and opportunities to expand their product offerings.
However, the outlook will also depend on regional economic conditions, supply chain stability, and the ability of businesses to manage increasing input costs.
Kuwait’s Non-Oil Economy Shows Signs of Resilience
The latest PMI figures highlight the resilience of Kuwait’s non-oil private sector as the country continues to strengthen economic activity beyond the energy industry.
Improving customer demand, stronger export orders, and increased business investment indicate positive developments for companies operating across different non-oil industries.
While rising costs and moderate employment growth remain important concerns, sustained improvements in new orders could support further expansion in the months ahead.
For Kuwait, maintaining this momentum will be important to its broader economic diversification ambitions and efforts to strengthen the private sector’s contribution to long-term growth.
