Kazakhstan: Services PMI falls below neutral threshold in August
The S&P Global Kazakhstan Services Purchasing Managers’ Index (PMI) fell to 48.5 in August—the joint-worst reading since February 2023—from 51.4 in July. As a result, the index moved below the 50.0 no-change threshold, and signaled a deterioration in services-sector business activity index compared to the previous month.
August saw a renewed decline in new orders, which firms attributed to softer demand, adverse weather conditions, a weaker tenge, plus insufficient marketing and investment. More positively, backlogs remained broadly stable, while retirements and a lack of suitable candidates drove a marginal decline in employment.
Shifting to prices, input costs rose at a faster pace amid a depreciating tenge and rising labor costs. As a result, output charge inflation accelerated. Lastly, business confidence improved to a three-month high, with firms expressing optimism about future market conditions and investment plans.