Kazakhstan’s production falls for the first time in 16 months

The Freedom Holding Corp. Kazakhstan Manufacturing PMI (Purchasing Managers’ IndexTM) posted 49.7 in June, dipping below the 50.0 no-change mark following a reading of 51.3 in May.

Although signaling the first deterioration in business conditions for 16 months, the index pointed to only a marginal worsening in the health of the sector.

Central to the deterioration in operating conditions was a renewed reduction in manufacturing output, the first since February 2024. Production was down solidly amid softer new order growth and reports of pauses to repair machinery.

Alongside the drop in output, manufacturers also signaled a reduction in employment. The marginal fall in staffing levels ended a 15-month stretch of job creation.

While Kazakh manufacturers posted a renewed fall in output during June, they were increasingly optimistic that production would increase over the coming year. Sentiment rose to a three-month high, with more than 54% of respondents expressing optimism.

Growth plans and expanded customer bases were the main factors behind the positive outlook.