RIYADH: Gulf business conditions diverged in October as Kuwait’s non-oil sector strengthened, Qatar’s non-energy growth slowed, and Egypt’s contraction eased to an eight-month low.
According to the latest S&P Global Purchasing Managers’ Index surveys, Kuwait’s PMI rose to 52.8, indicating solid growth; Qatar’s PMI slipped to 50.6, pointing to only a marginal upturn; and Egypt’s index increased to 49.2, suggesting a softer decline in business activity.
In Egypt, the non-oil private sector showed signs of stabilization as declines in output and new orders moderated.
The PMI rose from 48.8 in September to 49.2 in October, remaining below the 50 threshold that separates growth from contraction but above its long-term trend.
“The Egypt PMI stayed above its long-term trend in October, pointing to a year-on-year GDP growth rate of about 4.6 percent,” said David Owen, senior economist at S&P Global Market Intelligence.
However, he cautioned that “rising cost pressures could slow things down if companies struggle to absorb these costs.”
Wage costs climbed at the fastest rate since 2020, lifting input inflation, though firms largely held prices steady to support sales.
In Kuwait, non-oil firms reported faster increases in output, new orders, and employment, marking the most robust expansion in several months.
The PMI climbed to 52.8 from 52.2 in September. “The October PMI data for Kuwait help to allay any fears that the recent growth slowdown was going to result in a more prolonged soft patch,” said Andrew Harker, economics director at S&P Global Market Intelligence.
Hiring grew at the fastest pace in four months, but staff shortages contributed to a further accumulation of backlogs.
Companies also faced sharper rises in input and staff costs, yet output prices rose only marginally as firms sought to remain competitive and secure new business.
Meanwhile, Qatar’s non-energy private sector recorded a slowdown, with the headline PMI easing to 50.6 in October from 51.5 in September, the weakest reading since January.
The decline reflected softer output and new order volumes, with construction activity showing notable weakness.
“Qatar’s non-energy private sector continued to report an overall improvement in business conditions in October,” said Trevor Balchin, economics director at S&P Global Market Intelligence.
That said, he added, the headline PMI eased to a nine-month low of 50.6, signaling only a fractional upturn.
Despite weaker demand, employment increased at one of the fastest rates on record, led by gains in manufacturing.
Firms also reported rising wages and purchase prices but lower overall input costs as competitive pressures weighed on selling prices.
