The Kazakh manufacturing sector signalled further growth in June following a reversal in May from 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 53.0 in June, after posting 52 in May. The headline Kazakhstan Manufacturing PMI is a composite single-figure measure of manufacturing performance. Any figure below 50.0 represents a deterioration. Growth recovery was marked by new orders expanding to the greatest extent in 40 months of data collection since the survey began in 2019, the statement accompanying the survey data said.
This, combined with expectations of further improvements in new business in the months to come, supported the first rise in employment within a span of a year and helped ramp up purchasing activity.
Anuar Ushbayev, managing partner and chief investment officer at Tengri Partners, said: "The recovery in the manufacturing sector gathered momentum at the midway point of the year, with the PMI hitting a new peak in June. The strength of new order growth, renewed job creation and upbeat expectations for the months ahead were all key positives from the latest survey.
"Firms continue to face logistical difficulties due to the sanctions placed on Russia, and sharp price rises which limited the pace of output growth, but latest data suggest that they are able to overcome some of these problems and keep moving forward," he added.