The Freedom Holding Corp. and S&P Global Kazakhstan Manufacturing PMI® (Purchasing Managers’ Index™) was at 51.7 in October, showing a slight decline compared to 52.3 in September. Business activity in Kazakhstan’s service sector also fell, with the index reading at 49.0 in October, down from 51.1 in September. An index reading above 50 indicates an increase in activity, while a reading below 50 signals a decrease, Freedom Holding Corp reported in a statement.
According to Yerlan Abdikarimov, director of the Financial Analysis Department at Freedom Finance Global PLC (a 100% subsidiary of Freedom Holding Corp.), Kazakhstan’s manufacturing industry is stable and shows the potential for growth in the coming months. New orders increased for the ninth month, driven by improving customer demand, which has, in turn, contributed to a further rise in production.
«At the same time, October was marked by both one of the strongest slowdowns in production growth this year and a sharp increase in the number of new jobs. We associate the latter with improved short-term expectations amid the signing of new contracts. Among the restraining factors is the extension of delivery times. The weakening of inflationary pressures, although generally a positive factor, nevertheless limits the growth of sales prices and slows down the growth of revenue.»
As the expert noted, after recording a modest expansion in the month prior, Kazakhstan’s service sector activity recorded a renewed contraction in October, underscoring the decline in demand against the backdrop of growing competition and decreased customer activity.
«Nevertheless, the sector demonstrated expansion in the labor market, recording employment growth for the second consecutive month, albeit at a somewhat slower pace that lagged industrial enterprises. The continued easing of cost inflation pressures led to a restraint on the rate of price growth among service providers, reaching its lowest level in the past four years. Despite these challenges, market participants remain optimistic about the future, expecting new contracts and investment opportunities to boost activity in the next twelve months,» he said.
The first PMI report in cooperation with Freedom Holding Corp. was released on October 1, 2024. By supporting the release of Kazakhstan’s PMI® by S&P Global, Freedom Holding Corp. reaffirms its commitment to promoting alternative economic indicators in the local market, enhancing transparency, and providing access to critical information about domestic economic activity.
The PMI® by S&P Global is currently calculated for more than 40 countries and major regions, including the eurozone. A wide range of experts and businesses closely follow this economic indicator. The PMI covers 85% of global GDP and is featured on top-tier professional platforms, such as Bloomberg and Thomson Reuters. Various central banks, financial markets, and company executives rely on PMI reports, which provide accurate and unique monthly data on economic activities.
