Growth in Kazakhstan’s manufacturing sector continued in January, but eased from the record-breaking rates seen in December, according to the monthly Kazakhstan Manufacturing Purchasing Managers' Index (PMI) survey.

The PMI was recorded at 51.5, above the 50.0 no-change mark, but below December’s 53.9, which reflected the highest recorded expansion since the survey, presently compiled by S&P Global and Freedom Holding, was launched six years ago. 

“Manufacturers continued to secure greater volumes of new orders, leading to expansions in output, employment and purchasing activity, while there was a near-stabilisation of supply chains. On the price front, the rate of input cost inflation quickened amid currency weakness, but output prices were raised at a slower pace,” an accompanying statement issued with the PMI data said. 

Yerlan Abdikarimov, director of Financial Analysis Department at Freedom Finance Global, a wholly-owned subsidiary of Freedom Holding, commented: "Kazakhstan’s manufacturing sector continued to grow in January, although the pace of growth slowed markedly compared to December, when the all-time high was recorded. Production volumes increased at the start of the year, supported by stable demand and new orders, which contributed to a modest expansion in employment and purchasing activity.

"However, the improvement in business confidence was accompanied by several challenges, including rising cost-push inflation, exchange rate fluctuations, logistical issues and raw material shortages. The observed accumulation of unfulfilled orders is likely a temporary phenomenon coinciding with the festive period. The outlook for the next 12 months remains positive, with optimism reaching its highest level in seven months."