The Freedom Holding Corp. Kazakhstan Manufacturing PMI (Purchasing Managers’ Index) posted 52.1 in February, up from 51.5 in January. The index ranges from 0 to 100, with readings above 50 indicating growth and below 50 signaling contraction. The latest figure marks 12 consecutive months of strengthening operating conditions.
A key driver of February’s overall improvement was the ability for firms to secure new orders. New business increased for the 13th straight month, growing at a faster pace than in January. Respondents cited improved demand, new contract signings and the impact of advertising.
The increase in new orders led to a rise in production, extending the streak of monthly expansion to one year. Higher output requirements led manufacturers to expand staffing. However, the pace of job creation slowed to a nine-month low, contributing to accumulated backlogs.
Purchasing activity also expanded at a solid rate in February, though growth slowed to a four-month low. Meanwhile, logistical issues, particularly with customs clearances, modestly lengthened suppliers’ delivery times.
About 54% of respondents expect output to rise in the coming year, with confidence reaching an eight-month high.
Input cost inflation accelerated for the fourth consecutive month in February, hitting its fastest rate in two years. Higher costs for raw materials, transportation and utilities were reported, along with currency weakness against the Russian ruble, adding to inflationary pressures.
As a result, manufacturers raised selling prices for the 18th straight month, with the fastest price increase since last September.
