Kazakhstan’s manufacturing sector continued to contract in February, weighed down by a further decline in new orders and the lingering effects of January’s VAT increase, which pushed up input costs. In response, companies reduced staffing, purchasing activity and inventory levels.
The Freedom Holding Corp. Kazakhstan Manufacturing PMI fell from 49.8 in January to 48.1 in February. The reading remained below the 50.0 threshold that separates expansion from contraction for the second consecutive month, signaling a modest deterioration in operating conditions. Business performance worsened at the fastest pace since August of last year.
A key driver of the downturn was...