Prime Highlights:
- Kuwait and Qatar’s non-oil sectors continued to grow in September, showing steady business activity and optimism for the future.
- Egypt’s non-oil sector faced a slowdown, with falling new orders and weak economic conditions affecting growth.
Key Facts:
- Kuwait’s PMI stood at 52.2 and Qatar’s at 51.5, both above the 50 mark that separates growth from contraction.
- Egypt’s PMI dropped to 48.8, marking the sharpest fall in new orders in five months, while employment remained largely unchanged.
Key Background:
The non-oil private sectors of Kuwait and Qatar continued to expand in September, although at a slightly slower pace, while Egypt faced weakening business conditions, according to the latest S&P Global Purchasing Managers’ Index (PMI) survey.
Kuwait’s non-oil sector grew steadily in September, with its PMI slightly falling to 52.2 from 53 in August, staying above the 50 mark that separates growth from contraction. The development indicates the attempts of Kuwait to diversify its economy. Purchases increased since companies were doing promotions, competitive pricing, and advertising. However, staffing levels increased only marginally despite rising output, leaving outstanding business accumulated for the twelfth consecutive month.
“Although growth has slowed slightly, the non-oil private sector in Kuwait remains in solid expansion territory, and companies are confident about their work pipelines over the next year,” said Andrew Harker, Economics Director at S&P Global Market Intelligence.
Qatar’s non-energy sector also reported continued improvement, with its PMI falling slightly to 51.5 from 51.9, signaling moderate growth. Output and hiring both grew, and companies raised wages despite ongoing inflation. The sector also gained from strong demand in real estate, marketing efforts, and ongoing investments, keeping businesses optimistic about future growth.
“Overall business conditions in Qatar are improving, supported by stronger output and workforce expansion, as well as ongoing investment,” noted Trevor Balchin, Economics Director at S&P Global Market Intelligence.
In contrast, Egypt’s non-oil sector shrank, with the PMI falling to 48.8 from 49.2, showing a drop in business activity. The decline was largely attributed to reduced orders, low economy, and increased wages. Most companies did not change their staff levels, and prices rose moderately.
However, the recent strengthening of the Egyptian pound helped lower some costs, giving companies a bit of relief. “While the sector faces challenges in gaining new work, the modest easing in costs offers a small buffer,” said David Owen, Senior Economist at S&P Global Market Intelligence.
Overall, the survey highlights steady growth in Kuwait and Qatar’s non-oil sectors, while Egypt faces a modest contraction, reflecting differing economic dynamics across the region.
