Freedom Holding Corp. Kazakhstan Manufacturing PMI reports record rise
The Freedom Holding Corp. Kazakhstan Manufacturing PMI® (Purchasing Managers’ Index™) hit a fresh survey record for the second month running in December, rising to 53.9 from 53.5 in November. The index varies between 0 and 100, with a reading above 50 indicating an increase and below 50 a decrease.
Why is business activity in the manufacturing sector growing?
According to analysts, the record-high rate reflects record increases in new orders and manufacturing production. Staffing levels increased modestly, but sustained job creation has been recorded since March, with firms often highlighting the securing of workers on a full-time basis at the end of the year.
Among negative factors, Freedom Holding Corp. reported that cost inflation quickened again, although output prices increased at a slightly slower pace than in November and remained weaker than the series average.
The Kazakh manufacturing sector ended 2024 on a positive note, seeing growth accelerate further and business conditions improve to the greatest extent since the survey began almost six years ago, according to Freedom Holding Corp. Kazakhstan Manufacturing PMI, which tracks manufacturing production and purchasing activity in the country. The survey hit a record for the second month running in December, rising to 53.9 from 53.5 in November.
Demand improvements resulted in firms responding by raising purchasing activity and employment. Meanwhile, cost inflation quickened again, but output prices increased slightly slower than in November and remained weaker than the series average.
«Kazakhstan’s manufacturing industry is ending the year at a historic high, achieving record growth in production volumes and new orders. The price factor remains relevant: the acceleration of cost inflation has led to an increase in selling prices. However, the fact that the growth rate in both cases remained below the historical average adds a sense of optimism,» said Yerlan Abdikarimov, director of the Financial Analysis Department at Freedom Finance Global PLC (a 100% subsidiary of Freedom Holding Corp.).
The expert also noted that stocks of finished goods have rebounded for the first time in seven months, concluding a prolonged period of depletion. Industry representatives remain optimistic about 2025, planning to expand production in anticipation of further demand growth.
Freedom Holding Corp. has been sponsoring the Kazakhstan Purchasing Managers’ Index™ (PMI®) by S&P Global since October 2024. The PMI covers 85% of global GDP by surveying the largest economies in the world.
Business activities in other sectors
The Business Activity Index slowed to 50.7 points in December, although it has been positive since February 2024, according to the National Bank. The regulator believes that the rate reflects slowing business activity in the manufacturing and services sectors, which dropped to 50.6 and 50.8 points, respectively (from 53 and 51.4 in November), as well as a decline in the mining industry from 50.2 to 48.8 points. The construction sector was the only industry reporting a slight increase of 2.4 percentage points.
The Business Climate Index in Kazakhstan has also declined, reflecting a worsening of current business conditions in the country. That being said, overall evaluations by entrepreneurs are still positive and optimism about future business conditions remains. The business cycle indicator continues to stay in the risk zone, pointing to stable business activity. Enterprises reported slowing demand for their products and services while also noting slight positive changes in infrastructure. However, issues related to protection for businesses, tax burden and access to finances/loans have received negative assessments.
