Kazakhstan’s service sector activity saw renewed gains in November, following a contraction in October, according to purchasing managers’ index (PMI) data released by Freedom Holding Corp and S&P Global on December 5.

“November data marked a renewed rise in service sector activity across Kazakhstan, amid a fresh improvement in underlying demand trends,” the accompanying statement to the PMI data said.

“Meanwhile, cost pressures remained subdued, enabling firms to pursue more competitive pricing strategies. Average output charges for Kazakh services increased at the slowest pace since December 2020,” the statement added. 

The seasonally adjusted PMI services index for October grew to 50.8, up from 49 in October (any reading above 50.0 indicates an expansion in business activity).

Yerlan Abdikarimov, director of the financial analysis department at Freedom Finance Global, commented: "November saw a recovery in business activity among Kazakhstan's service sector, with a noticeable increase in the number of new orders. Service providers reported successful marketing campaigns, the launch of new products, and a rise in demand. It appears that service providers have nearly completed their staffing needs, as the hiring pace has become more moderate compared to the previous two months."

"Long-term easing of inflationary pressures, despite the continued rise in certain costs and utility prices, has contributed to an increase in sector competitiveness. In some cases, this has allowed for a reduction in service prices. Outlook for the near future improved for the second consecutive month, exceeding the historical average. Key factors supporting this growth include increased investments, the implementation of marketing strategies, the launch of new products, and improved demand," he concluded.