Companies in Kuwait hiring staff at record rate

Pexels/Mikhail Nilov

• Rapid rise in new orders in June
• Workforce expansion fastest on record
• Input cost inflation softens

Companies in Kuwait are expected to embark on a staff hiring spree, after a rapid rise in new orders in June.

New business increased for the 17th month in a row, the latest business sentiment survey from S&P Global shows, with a particular emphasis on orders from overseas.

“The expansion was the fastest since the survey began in September 2018,” the report said.

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Andrew Harker, economics director at S&P Global Market Intelligence, said that as a result companies in Kuwait increased staff numbers at the sharpest pace on record in June.

“Firms were still unable to make a dent in their backlogs of work, however, suggesting that they may need to expand hiring further in the months ahead,” he said.

• Kuwaiti businesses struggling to meet demand as orders surge

• Opec+ output cuts weigh on Kuwait’s economic growth

• Kuwait’s record performance tempered by costs

In March this year the ratings agency Fitch described Kuwait’s fiscal and external balance sheets as among the strongest of any of the governments it rates. 

The rise in outstanding business was among the steepest in the history of the series.

The headline purchasing managers’ index remained above the 50 no-change mark for the 17th month running in June. At 51.6, the index was down from 52.4 in May, however, and signalled a modest deterioration in business conditions.

The twin factors of advertising and price discounting were also mentioned by respondents signalling the growth of new orders in June. 

Harker said: “There were more signs of input cost inflation softening, enabling companies to continue their policy of limiting price rises to customers in order to help secure new work.”