Activity and new business rise but at moderated rates in Kazakhstan

The Freedom Holding Corp. PMI Business Activity Index fell from 54.0 in July to 52.0 in August, signaling a solid but weaker increase in service sector activity — the slowest since April. Growth has nonetheless been recorded for eight consecutive survey periods.

According to Yerlan Abdikarimov, director of the Financial Analysis Department at Freedom Finance Global PLC, rising cost inflation is complicating demand conditions.

«Current business activity and 12-month expectations remain in the optimistic zone. At this stage, services are the key buffer supporting the economy, while manufacturing has fallen deeper into contraction. The sector’s outlook will depend on the adaptability of the services market and the strength of intersectoral linkages amid current macroeconomic and market challenges,» he said.

Where business activity rose, service providers attributed it to stronger underlying demand, new projects, and customer wins.

Price pressures were broadly in line with July’s levels and remained historically subdued. However, input costs rose at a slightly faster pace, with inflation reaching its highest rate since February. Meanwhile, private sector companies raised their charges modestly, marking the slowest increase in three months.