Kuwait's non-oil private sector recorded sharper increases in output, new orders and employment in November, though rising input costs threaten firms' ability to maintain competitive pricing, S&P Global reported on December 3.

The S&P Global Kuwait PMI rose to 53.4 from 52.8 in October, reaching a four-month high and signalling continued improvement in business conditions. The index has remained above the 50-point no-change mark continuously since September 2024.

New business increased at the fastest pace in four months, driven by competitive pricing and marketing strategies. Export orders also rose, with firms reporting that good quality products at competitive prices helped attract international customers.

Output expanded for the 34th consecutive month, with the rate of growth the strongest since June.

Companies raised staffing levels to deliver projects in a timely manner, with job creation quickening to a five-month high. The pace remained modest, however, and was insufficient to prevent a further build-up in backlogs of work. Outstanding business accumulated at the fastest rate since June 2024.

Input cost inflation accelerated to a five-month high, with both purchase prices and staff costs rising faster than in October. Firms pointed to electricity, printing, rent, transportation and wages as key drivers. Higher employment expenses reflected increased wages for existing staff and the hiring of new workers.

Efforts to price competitively meant companies raised output prices only modestly, though the pace of inflation reached a 17-month high.

Purchasing activity rose at the fastest pace in five months, while inventories accumulated to the largest degree in a year as firms stockpiled to respond quickly to customer requests. Suppliers' delivery times shortened markedly, to the greatest extent since June.

Business optimism improved for the third consecutive month to an 18-month high, with marketing strategies and competitive pricing supporting the positive outlook.

"The ability of firms to price competitively could be tested soon, however, as cost pressures continue to strengthen," said Andrew Harker, economics director at S&P Global Market Intelligence.

The survey covers around 350 non-oil private sector companies in Kuwait.