In April, the Business Activity Index across Kazakhstan’s service sector rose to 51.4, according to Freedom Holding Corp. By comparison, the index stood at 50.3 in March.
Growth in activity has been recorded in each month since the beginning of the year, with the latest increase being the most significant in nine months. According to surveyed representatives of the sector, the growth was primarily driven by inflow of new orders, with the latest expansion being the fastest in a year and a half.
Respondents attributed the increase to improving underlying demand trends, successful marketing campaigns, new client acquisitions and the introduction of new services.
The rise in activity and new business across Kazakhstan’s service sector in April was accompanied by increasing pricing pressures. Overall price growth emerged as a key factor contributing to the rising cost burden for many Kazakhstani suppliers.
The rate of input price inflation was higher than in the previous month, although still below the long-run average. Moreover, in response to rising costs, service providers in Kazakhstan raised their charges at a faster pace in April.
