Decline in Kazakhstan services PMI deepens in February

Decline in Kazakhstan services PMI deepens in February
/ S&P Global
By bne IntelliNews March 6, 2024

Kazakhstan’s services sector saw its sector activity decline deepen in February due to weak underlying demand trends and poor weather conditions, according to the business activity reading of the S&P Global Kazakhstan Services Purchasing Managers' Index (PMI).

The reading showed a PMI score of 48.5 in February, down from 49.8 registered in January. Any reading below 50 indicates a contraction.

In February, inflows of new business in Kazakhstan's services sector experienced a decline for the first time in three months. The drop marked the most significant decrease observed in nearly two years. Meanwhile, cost burdens at service firms in the country surged at a sharp and accelerated pace during the same period. However, there was a moderation in the rate of charge inflation compared to January, which had seen a joint-record high.

Maryam Baluch, an economist at S&P Global Market Intelligence, said: "Conditions across Kazakhstan’s service sector worsened midway through the opening quarter of the year. The recent freezing weather conditions across the country, alongside ongoing weakness in underlying demand trends prevented growth. That said, sentiment regarding the year ahead outlook remained strong, suggesting hopes that the current downturn will be reversed in the coming months. Additionally, the recent loosening of monetary policy by the National Bank of Kazakhstan could also help revive demand."


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