Kazakhstan: Services PMI falls in June
The S&P Global Kazakhstan Services Purchasing Managers’ Index (PMI) fell to 50.2 in June from 50.5 in May. As a result, the index remained above the 50.0 no-change threshold, but signaled a softer improvement in services-sector business activity compared to the previous month.
June’s reading reflected new business growth reaching a four-month low due to flooding, increased competition and funding issues. These challenges outweighed gains from new client and contract wins. Accordingly, firms cut their workforce in June after having boosted it in May.
In terms of prices, inflationary pressures cooled in June: Input prices rose only marginally, and output prices rose the least since December 2023. Lastly, confidence towards the 12-month outlook for service sector activity deteriorated to its weakest in just over a year, influenced by concerns over market competition.
Maryam Baluch, economist at S&P Global Market Intelligence, commented:
“While the cooldown was accompanied by a further easing of inflationary pressures, some service providers believe that cuts to charges are required, especially if growth is to be achieved in the second-half of the year.”