Kazakh manufacturing PMI signals stable conditions in January

Kazakh manufacturing PMI signals stable conditions in January
By Kanat Shaku in Almaty February 2, 2023

Kazakhstan's manufacturing sector signalled stable conditions in January, continuing the trend seen in December, according to the latest purchasing managers' index (PMI) survey data from Tengri Partners and S&P Global.

The index fell back to a “no change” mark of 50.0 in January, following December’s positive reading of 50.8.

The survey noted that new orders moved up marginally, but employment and output fell.

Additionally, the survey revealed confidence in manufacturing that new orders would continue growing over the course of 2023. There were also signs that logistical difficulties caused by the war in Ukraine started to ease in January. 

Anuar Ushbayev, managing partner and chief investment officer at Tengri Partners, said: "While the January PMI data overall speak of a stable start to the year for manufacturers in Kazakhstan, there were a number of positive signs within the details of the survey that suggest growth will be achieved in the future.” 

He added: “Business confidence jumped to the highest since early-2021 on expectations that new order growth will support rises in production. These expectations prompted firms to ramp up their purchasing activity to the joint-largest extent on record.

“With cost pressures and logistics issues less pronounced than on average during 2022, the coming year could also see a less challenging environment for firms to operate in. S&P Global Market Intelligence forecasts industrial production to rise 2.1% in 2023."