Business activity across Kazakhstan's service sector expanded for a fifth consecutive month in May and at the fastest rate since July 2022, though business sentiment recorded a sixth-month low and job shedding continued, according to the Freedom Holding Corp Purchasing Managers’ Index (PMI) produced by S&P Global.

The commentary read: “Kazakhstan's services activity rose markedly in May, and at one of the strongest rates in the series history which stretches back to March 2019. The Freedom Holding Corp. PMI® signalled a fifth successive monthly rise in business activity. The uptick was underscored by a sharper rate of expansion in new business. However, service providers remained reluctant to renew their hiring activity, with job shedding recorded for a third straight month. This reluctance could in part be explained by a more cautious outlook for activity in May. The level of optimism weakened notably from April.”  

The headline Business Activity Index posted at 54.3 in May, up from 51.4 in April (any figure above 50.0 denotes an expansion).

Yerlan Abdikarimov, director of the financial analysis department at Freedom Finance Global, a 100% subsidiary of Freedom Holding Corp, said: "The surge in activity in the services sector has largely resulted from sustained domestic demand and the execution of new contracts. At the same time, it is important to note that economic uncertainty has increased – primarily due to tax reforms." 

"The adverse impact of currency fluctuations and inflationary pressure has also continued to impact operating expenses, which continue to rise sharply. All of this has undoubtedly affected business sentiment and expectations for the year ahead. In such conditions, companies are logically focusing on prudent resource management and expanding their client base – one of the few stable priorities in the current environment," he added.