Kazakhstan’s manufacturing sector continued to expand in April, according to the monthly Kazakhstan Manufacturing Purchasing Managers' Index (PMI) survey, compiled by S&P Global and Freedom Holding.

The expansion in the country's manufacturing sector has lasted for five consecutive months

“Kazakh manufacturers reported a further improvement in business conditions as the second quarter of the year got underway. New orders continued to increase at a solid pace, but there were slowdowns in growth of both output and employment, plus a drop in business confidence. Meanwhile, the pace of input cost inflation softened, but remained sharp, leading to a further rise in selling prices,” the statement accompanying the PMI data said. 

The PMI was recorded at 51.2, above the 50.0 no-change mark, but below March’s 52.7.

Yerlan Abdikarimov, director of financial analysis department at Freedom Finance Global (a 100% subsidiary of Freedom Holding), said: "Business activity in the manufacturing sector remains in the optimistic zone, although the index has declined to a 14-month low. Growth has slowed, despite previously announced government initiatives aimed at supporting new investment projects in the industry. This adjustment can be explained by a combination of external factors (increased trade tensions and pressure on commodity markets) and internal ones – rising utility tariffs and currency volatility.

"In response, companies have increasingly passed risks onto product prices. Nevertheless, industry representatives continue to show confidence in the future: expectations for the next 12 months exceed the levels seen in the second half of last year."