Kazakhstan’s manufacturing sector reports increase in new orders

Kazakhstan’s manufacturing sector remained comfortably in growth territory at the end of the first quarter of the year. Moreover, expansion rates in output, new orders, employment and purchasing all strengthened in March, while business confidence reached a nine-month high, according to the Kazakhstan Manufacturing PMI® (Purchasing Managers’ IndexTM) by Freedom Holding Corp.

The Freedom Holding Corp. Kazakhstan Manufacturing PMI® rose to 52.7 in March from 52.1 in February, indicating a solid strengthening in the manufacturing sector’s health at the end of the first quarter of 2025.

Key factors driving growth:

• The rate of expansion in new business accelerated to a three-month high.

• The increase in new orders was a key driver behind the thirteenth consecutive monthly rise in manufacturing output. Additionally, companies reported that new and upgraded machinery had boosted production capacity.

• Employment increased for the thirteenth straight month, reaching its fastest pace since December.

• Stocks of purchases increased for the first time in nine months, partly due to efforts to build inventories for future use.

• Suppliers’ delivery times improved for the first time in nearly five-and-a-half years, as panelists reported better weather conditions and improved logistics.

However, logistics remained challenging for suppliers, and lead times shortened only marginally.

Manufacturers recorded a sharp increase in input costs, though the pace of inflation eased compared to February. Panelists reported higher costs for fuel, lubricants, raw materials and utilities.

The pass-through of higher input costs to customers led to a further solid increase in selling prices, with the inflation rate remaining unchanged from the previous month.

The Business Activity Index reflects the state of the manufacturing sector. It is the average value of five subindexes that track changes in new orders, production volumes, employment levels, delivery times and inventory levels.

Each subindex is measured on a scale from 0 to 100, where values above 50 indicate growth, while those below 50 signal a decline.