Kazakhstan PMI shows 8-month high in manufacturing sector output in May

Kazakhstan PMI shows 8-month high in manufacturing sector output in May
/ bne IntelliNews
By bne IntelliNews June 4, 2024

Kazakhstan’s manufacturing sector in May recorded an eight-month high in output on expanding new orders, according to the monthly S&P Global Kazakhstan Manufacturing Purchasing Managers' Index (PMI).

The PMI was recorded at 52.2, above the 50.0 no-change mark, up from April’s 51.5.

“An improving demand environment supported a strengthening of growth in the Kazakhstan manufacturing sector during May. A solid expansion of new orders fed through to a faster rise in output. In turn, firms increased their employment and purchasing activity,” an accompanying statement issued with the PMI results said. “Although input costs and output prices continued to rise, the respective rates of inflation were softer than the series averages,” the statement added.

Andrew Harker, economics director at S&P Global Market Intelligence, said: "Growth in Kazakhstan's manufacturing sector moved up a gear in May, with output rising to the greatest extent since last September. The current expansion across the sector has now been sustained for three months, providing encouragement for firms to take on extra staff and build up holdings of inputs and finished products. It was particularly pleasing to see reports of firms hiring staff on a full-time basis.”

"Part of the success firms are having in terms of demand likely in part reflects a relatively benign cost environment, with input prices rising at a pace much softer than seen on average since the survey began in 2019," he added.