Kuwait's Non-Oil Sector Sees Strong Job Growth Despite Slower Business Expansion in June

Kuwait, 4 July, 2024 : - Non-oil business activity in Kuwait saw slightly slower improvement in June compared to May, but employment levels surged to a record high as conditions continued to strengthen.

According to Andrew Harker, Economics Director at S&P Global Market Intelligence, sustained growth in new orders prompted companies to ramp up hiring at the sharpest pace ever recorded. Despite this, backlogs of work persisted, suggesting potential for further hiring in the coming months.

The S&P Global Kuwait Purchasing Managers’ Index (PMI) recorded a reading of 51.6 for June, down from May’s 52.4 but still indicating expansion as it remained above the 50.0 mark.

Kuwaiti non-oil companies reported ongoing increases in output, with new orders rising for the 17th consecutive month. Capacity constraints continued to drive employment growth, with firms expanding their workforce significantly.

While input costs rose sharply, inflation rates moderated for the third consecutive month. To protect profit margins amid competitive pricing, companies raised selling prices modestly.

Effective advertising strategies, including robust social media campaigns, contributed to increased output. International business also saw a notable uptick, marking the fastest growth since the survey began in September 2018.

Despite robust job growth, backlogs of work continued to accumulate, underscoring the strength of new order growth and the need for sustained employment expansion in the sector.

Source : www.zawya.com