Key insights
- Kazakhstan's service sector rebounded in April, with the Business Activity Index rising to 53.9. New sales increased due to improved demand, but employment fell amid company restructuring. Input costs surged, driven by higher supplier costs and salaries. Growth was concentrated in real estate and business services. While business expectations remain positive, the overall impact on US equities is slightly negative due to potential implications for global supply chains and inflationary pressures.
Investing.com -- Kazakhstan’s services sector returned to growth in April after three months of contraction, according to the latest Freedom Holding Corp. PMI data released Wednesday.
The Business Activity Index rose to 53.9 in April from 49.2 in March, marking the strongest expansion in nine months. A reading above 50 indicates growth.
The services sector recorded a sharp rise in new sales during April, with the pace of expansion accelerating from the slight upturn seen in March. Companies attributed the increase to improved demand trends and new contract wins.
Despite the renewed growth in activity, employment across the sector fell in April. Job losses have been recorded monthly since February, with the latest decline being the fastest since October, as firms cited closures and company restructuring.
Input costs surged during April, with the pace of inflation increasing to near January’s VAT-related peak. Higher supplier costs and increased salaries added to cost burdens.
Service providers raised their fees at a solid pace, though the rate of increase eased to the weakest level so far this year.
Growth was concentrated in real estate and business services, while consumer-facing and transport segments remained subdued.
The Kazakhstan Composite PMI Output Index posted 51.1 in April, up from 47.1 in March, indicating modest growth in private sector output for the first time in eight months. The upturn was driven entirely by the services sector, which offset ongoing contraction in manufacturing.
Business expectations for the next 12 months remained positive, with companies citing plans for increased marketing efforts and investment in new equipment.
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