Kazakhstan: Manufacturing PMI improves in March
The S&P Global Kazakhstan Manufacturing Purchasing Managers’ Index (PMI) rose to 51.6 in March from 49.8 in February. As a result, the index moved above the 50.0 no-change threshold and signaled an improvement in manufacturing sector operating conditions compared to the previous month.
In March, new orders continued to increase robustly amid an improving demand environment. This led output to expand after six months of contractions and prompted manufacturers to increase purchasing activities—for the first time in five months—and employment.
Turning to prices, manufacturers faced a softer increase in input costs despite higher raw material prices. Firms reacted by increasing output costs at a milder rate; some firms offered discounts to secure new business. Lastly, business confidence reached a record high, driven by expectations of expanding output and reports of contracts nearing completion.
Andrew Harker, economics director at S&P Global commented on the outlook:
“There were even signs that the logistics issues that have plagued the sector for so long may be easing, with supplier lead times lengthening only marginally in March. The positive overall performance hopefully paves the way for further expansions in the months ahead.”