Growth in business activity moderated in Kazakhstan’s service sector in February, according to purchasing managers’ index (PMI) data released by Freedom Holding and S&P Global on March 5.

“Although business activity and new orders continued to rise in the Kazakhstan services sector in February, respective rates of expansion were only marginal. In fact, the Freedom Holding Corp. PMI produced by S&P Global noted that the latest gains in new business and activity were the weakest in the current four- and two-month sequences of growth, respectively,” the statement accompanying the PMI data said. 

The seasonally adjusted PMI services index for February fell to 50.2 from 51.3 in December (any reading below 50.0 indicates a contraction in business activity).

Yerlan Abdikarimov, director of the financial analysis department at Freedom Finance Global PLC (100% subsidiary of Freedom Holding), commented: "In February 2025, the service sector in Kazakhstan, unlike the manufacturing industries, experienced a slowdown in business activity following the January recovery. The current PMI index barely exceeded the neutral level of 50.0. Minimal growth in new business was observed, the weakest in the past four months, with firms citing increasing competition.

“Cost pressures were the strongest in nearly a year: not only overall costs but also labour costs rose.” At the same time, service companies passed on increased costs to customers to a greater extent than manufacturers did. Nevertheless, we see that despite increased uncertainty during the period of economic reforms in the country and rapidly changing market conditions, sector representatives raised their expectations for the next 12 months to an 11-month high, betting on improved demand and the implementation of new projects."