Kazakhstan’s service sector continued to expand in August, though at a slower pace than was recorded earlier in the year, according to the latest Purchasing Managers’ Index (PMI) data released by Freedom Holding and S&P Global.

The Business Activity Index, which tracks changes in output compared to the previous month, fell from 54.0 in July to 52.0 in August. While this marked the weakest growth seen since April, the figure remained above the 50.0 threshold, signalling expansion for an eighth consecutive month.

New business received by service firms saw a "solid" rise, though the pace of growth moderated further from earlier highs, according to the statement accompanying the PMI data. Despite the slowdown, sector performance continued to compare favourably with historical trends.

Business confidence showed signs of recovery, with firms becoming more optimistic about activity prospects for the next 12 months, the statement said. Sentiment reached a three-month high in August, rebounding from June’s low, although it remained below the survey’s long-run average.

The data suggests that while momentum in services is cooling after mid-year peaks, the sector remains on a stable growth path supported by resilient demand and improving outlooks among businesses.

Yerlan Abdikarimov, director of the financial analysis department at Freedom Finance Global, commented: "In August, Kazakhstan’s services sector continued the slowdown in growth that had begun a month earlier. Rising cost inflation is complicating demand support. Nevertheless, current business activity and 12-month expectations remain in the optimistic zone.

"At this stage, services remain the key buffer supporting the economy, while manufacturing has fallen deeper into contraction. The sector’s further outlook will depend on the adaptability of the services market and the strength of intersectoral linkages amid current macroeconomic and market challenges."