GCC economies demonstrate resilience in August

Latest non-oil Purchasing Managers' Index data pointed to increasing signs of recovery and resilience among Gulf Cooperation Council (GCC) economies. Growth of output and new orders gathered pace, and companies saw improved delivery lead times as they adapted their supply chains to changing circumstances. The outlook for the year ahead also brightened midway through the third quarter, despite geopolitical uncertainty.

Four of the six GCC economies — Saudia Arabia, the United Arab Emirates, Kuwait and Qatar — are currently covered by Purchasing Managers' Index data, the exceptions being Bahrain and Oman. Aggregating the data for the economies that S&P Global covers gives an insight into the performance of the whole region. GCC business activity increased rapidly in August, at a pace only just shy of that seen in February, before the outbreak of war in the region. Similarly, new orders also rose sharply, and business confidence hit a six-month high amid hopes that companies will be better able to focus on sales generation if regional tensions abate.