Kazakhstan: PMI signals weaker services sector activity
The S&P Global Kazakhstan Services Purchasing Managers’ Index (PMI) fell to 48.5 in February from 49.8 in January, the steepest downturn in a year. As a result, the index moved further below the 50.0 no-change threshold and signaled a faster deterioration in services sector operating conditions compared to the previous month.
February’s deterioration primarily reflected the most pronounced drop in new business inflows in nearly two years: Weak underlying demand trends and adverse weather conditions weighed on new orders. Consequently, firms adjusted their workforce numbers downwards.
Turning to prices, input cost inflation rose at the sharpest pace since September, driven by higher prices from suppliers, utilities, and labor. In response, service providers raised their output charges, though the rate of inflation moderated from January’s multi-year high. Lastly, business confidence within the sector reached a two-year high, fueled by hopes of stronger demand and expected increases in activity.