KUWAIT CITY, Aug 5: The Purchasing Managers’ Index (PMI) for Kuwait rose to 53.5 in July, up from 53.1 in June, marking a notable improvement in the non-oil private sector’s performance. This increase reflects strengthened business conditions and continued expansion for the 11th consecutive month, according to the latest data released by S&P Global Ratings on Tuesday.

The PMI, a composite indicator tracking the performance of Kuwait’s non-oil private sector, showed that the sector has remained firmly in growth territory throughout July. The improvement was driven by a sharp acceleration in new orders, which helped extend the expansion period that began in February 2023.

The key driver of the recent PMI increase was a significant rise in new orders, signaling that demand for goods and services continues to grow. Despite the surge in new orders, employment levels remained steady, following a record high in the previous month. This stability in workforce numbers was largely attributed to companies’ cautious approach to hiring, with some firms reluctant to take on additional staff due to cost concerns and efforts to complete ongoing projects on time.

While new export orders saw growth, the pace of expansion slowed to a three-month low, with businesses attributing the increase to advertising efforts and price discounts.

Inflationary pressures showed signs of easing at the beginning of the third quarter, which was welcomed by businesses. However, the increase in new orders led to a resurgence in backlogs, as companies struggled to meet demand while maintaining stable staffing levels. Despite the rise in backlogs, the pace of increase remained modest and the weakest observed since January.

In response to heightened competition, many firms were forced to implement price cuts to secure new orders. These efforts helped to contain input costs and limit the extent to which higher costs were passed on to customers.

Looking ahead, companies remained optimistic about future business prospects, with many expecting production to increase over the next year. However, confidence levels in the near term dipped to a three-month low, primarily due to the slow pace of hiring. Firms are focusing on diverse marketing strategies, including the use of digital channels, to maintain their competitive edge and support long-term growth.

Andrew Harker, Director of Economics at S&P Global, commented on the survey results, stating that Kuwait’s non-oil private sector began the second half of 2025 similarly to how it finished the first half, with strong growth in output and new orders. He highlighted that while employment remained largely unchanged, the sector’s continued expansion is promising for future business growth.

Harker also noted that companies were relieved by the easing of inflationary pressures but pointed out that hesitation to hire had led to an increase in backlogs of work. He expressed optimism that the ongoing growth in new business would eventually lead to a renewed hiring trend.

The July PMI results for Kuwait’s non-oil private sector reflect a period of sustained growth, driven by an increase in new orders and overall business activity. While inflationary pressures have eased, challenges remain in terms of staffing and managing backlogs. Looking forward, there is cautious optimism that the sector will continue to expand, with increased hiring expected in the coming months.

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea on Aug 5. (AP)

BANGKOK, Aug 5, (AP): Asian shares advanced on Tuesday, following US stocks higher after they won back most of losses last week that were capped by a sell-off driven by weak US jobs data. Investors appeared to have recovered some confidence after worries over how President Donald Trump’s tariffs may be punishing the economy sent a shudder through Wall Street last week.

At the same time, a stunningly weak US jobs report Friday raised expectations that the Federal Reserve will cut interest rates at its next meeting in September, potentially a plus for markets. This week’s highlights will likely include earnings reports from The Walt Disney Co, McDonald’s and Caterpillar, along with updates on US business activity.

In Asian trading, Tokyo’s Nikkei 225 index gained 0.6% to 40,549.54, while the Kospi in South Korea jumped 1.6% to 3,198.00. In Hong Kong, the Hang Seng rose 0.6% to 24,855.78. The Shanghai Composite index surged 1% to 3,617.60. Australia’s S&P/ASX 200 jumped 1.2% to 8,770.40, while the SET in Thailand climbed 1.6%.

India’s Sensex was the sole outlier, losing 0.3% on concerns over trade tensions with the United States, with the Trump administration insisting on cutbacks in oil purchases from Russia. India has indicated that it will continue buying oil from Russia, saying its relationship with Moscow was ‘steady and time-tested,’ and that its stance on securing its energy needs is guided by the availability of oil in the markets and prevailing global circumstances.

“Trump’s threats of ‘substantial’ tariff hikes on account of imports of Russian crude pose a quagmire for India,” Mizuho Bank said in a commentary. “Between exacerbated U.S.-imposed geo-economic headwinds and financial/macro setbacks from Russian oil advantages lost, pain will be hard to avert.” On Monday, the S&P 500 jumped 1.5% to 6,329.94.

The Dow Jones Industrial Average climbed 1.3%, or 585.06 points, to 44,173.64. The Nasdaq composite leaped 2% to 21,053.58. Idexx Laboratories helped Wall Street recover from its worst day since May, soaring 27.5% after the seller of veterinary instruments and other health care products reported a stronger profit for the spring than analysts expected.

The pressure is on U.S. companies to deliver bigger profits after their stock prices shot to record after record recently. Reports from big U.S. companies have largely come in better than expected and could help steady a US stock market that may have been due for some turbulence.   

KUWAIT CITY, Aug 4: The Petrochemical Industries Company (PIC) announced a net profit of KD58.5 million for fiscal 2024/2025 – an increase of KD19.5 million or 33.3 percent compared to the profit of KD39 million in the last fiscal year. Oil sector sources pointed out that this strong financial performance was achieved despite the challenges posed by geopolitical instability; specifically, the disruptions in global supply chains and widespread shift to long-haul shipping routes, which significantly increased logistics costs. Sources attributed the company’s robust performance to several factors as follows:

Strategic Acquisitions and International Expansion Looking ahead, PIC is well-positioned for continuous profitability, driven by recent and upcoming acquisitions approved by KPC.

Among the most significant is the April 2025 agreement with China’s Wanhua Chemical Group to acquire a 25 percent stake in a group of petrochemical plants in Yantai, China. The deal covers several high-value industrial units, including propylene oxide, tert-butyl alcohol, acrylic acid, butyl acrylate, and other specialty chemical products PIC is also evaluating new investment opportunities, both locally and internationally, over the next two years, with the aim of expanding its chemical production portfolio.

Its current investment portfolio includes 80 percent stake in Kuwait Paraxylene Production Company (KPPC), 46 percent in Kuwait Stearin Company (KTSC), 24.5 percent in Equate Petrochemical Company (EQUATE), 42.5 percent in The Kuwait Olefins Company (TKOC), 33.3 percent in Gulf Petrochemical Industries Company (GPIC), 25 percent in SK Advance (South Korea) and 49 percent in SKPIC Global (South Korea) The company reaffirmed its commitment to environmental stewardship, emphasizing ongoing initiatives to reduce industrial pollutants and support Kuwait’s national goal of carbon neutrality by 2050. Furthermore, PIC’s strategic direction aligns with the 2040 strategy of KPC, aiming to strengthen Kuwait’s position as a leading player in the global petrochemical industry.

Meanwhile, the Central Agency for Public Tenders (CAPT) has announced the extension of the deadline for submitting bids for the Kuwait Oil Company (KOC) tender to establish a new excess water injection network in Rawdatain in North Kuwait until Aug 19, instead of Aug 5. It was also published in Kuwait Al-Youm that the tender for the construction and installation of the fourth water injection station in the South Kuwait, affiliated with KOC, was postponed until Aug 26, instead of Aug 5.

The tender for the construction and installation of separation center three and water injection station three in South Kuwait was postponed until Aug 19, instead of Aug 5. Moreover, CAPT postponed the submission of bids for the KOC tender for the construction and installation of the oil separation center one and water injection station one in East Kuwait until Aug 26, instead of Aug 5.

By Najeh Bilal
Al-Seyassah/Arab Times Staff