Shafaq News- Kuwait

Kuwaiti businesses reported weaker export demand in May, citing the closure of the border with Iraq and the impact of regional tensions on trade flows, according to the latest Purchasing Managers' Index (PMI) survey.

Data released by S&P Global showed that new export orders continued to decline during the month, with surveyed firms pointing to disruptions caused by the regional conflict and restrictions on cross-border trade with Iraq.

Despite ongoing declines in output and new orders, Kuwait's PMI rose to 47.2 in May, its highest level in three months, signaling a slower pace of contraction compared with previous months.

Companies also expressed greater confidence about future business activity, supported by promotional campaigns and advertising efforts, although concerns remained over regional trade conditions and export demand.

A PMI reading below 50 indicates a contraction in private-sector business activity, while a reading above 50 signals expansion.

The closure followed Iran's missile and drone strikes on US military bases in Kuwait in late February 2026, part of a broader regional escalation involving US and Israeli strikes inside Iran. Kuwait shut the Safwan crossing —the sole land border with Iraq— shortly after its territory was targeted, and the crossing has remained volatile since.