Kazakh manufacturing PMI signals further growth in August

Kazakh manufacturing PMI signals further growth in August
/ bne IntelliNews
By bne IntelIiNews September 2, 2022

Kazakhstan's manufacturing sector signalled further growth in August following the expansion seen in July, June and May after a period of disruption caused by the outbreak of war in Ukraine and subsequent imposition of sanctions on Russia, according to the latest purchasing managers' index (PMI) survey data from Tengri Partners and IHS Markit.

The index posted 52 in August, following July's 52.8.

The survey noted that the​​ output growth rate softened due to ongoing supply-chain disruption driven by Ukraine war sanctions against Russia and sharply rising prices. Moreover, currency weakness meant that input costs rose sharply again.

Anuar Ushbayev, managing partner and chief investment officer at Tengri Partners, said: While it was good to see that manufacturers continued to secure greater new order volumes in August, there were some concerning aspects of the latest Kazakhstan manufacturing PMI survey. Production barely recorded any growth over the month, while severe supply-chain disruption and cost pressures due to exchange rate weakness continued.

"Overall though, we hope that the ongoing expansion of new orders and rising workforce numbers can lead to a more positive picture regarding production in the months ahead." 

The headline Kazakhstan Manufacturing PMI is a composite single-figure measure of manufacturing performance. Any figure below 50.0 represents a deterioration. Growth was marked by new orders expanding amid some signs of growth slowing, while production was broadly unchanged.