Business activity falls for the first time in ten months in Kazakhstan

The headline Freedom Holding Corp. PMI Business Activity Index posted below the neutral mark of 50.0 that separates expansion from contraction for the first time in the year to date in October. A reading of 49.3, down from 50.8 in September, highlighted a modest reduction in service sector activity, which was the most pronounced in a year.

The headline index has now edged down in each month since June, when activity was rising at a marked pace.

According to Erlan Abdikarimov, director of the Financial Analysis Department at Freedom Finance Global Plc., Kazakhstan’s services sector entered a transitional phase in October, following a strong performance demonstrated earlier this year.

«Despite new business inflows remaining in growth territory, the overall business activity index declined below the neutral level and the twelve-month average, though still marginally above last October’s reading. Margin risks persist under pressure from rising procurement costs and currency fluctuations, compelling companies to adjust service prices. Business expectations for the year ahead remain cautiously positive, reflecting prudence in light of upcoming changes in tax legislation,» he said.

While some firms continued to benefit from improving demand trends, others noted that the recent cooling in growth of new work, tax changes, competition, and repair work led to a decline in business activity.

Indeed, new orders received by Kazakhstan’s service sector rose solidly in October, continuing the current run of increases to 12 months. However, the rate of expansion continued to soften, reaching its weakest level since March. Businesses often highlighted declining purchasing power among customers.

In September, it was reported that Kazakhstan’s services PMI fell to 52 in August 2025, down from 54 in July. This marks the weakest growth since April, although growth has now been recorded for eight consecutive months.