Strong growth momentum is being observed in the manufacturing sector of Kazakhstan, according to the latest purchasing managers' index (PMI) survey data conducted by Tengri Partners and S&P Global.
The survey indicated a continued increase in output and new orders, and for the first time in six months, firms expanded their staffing levels. Purchasing activity also experienced a significant expansion, resulting in an increase in stocks of purchases, the most pronounced since the survey's inception in March 2019.
The Kazakhstan Manufacturing PMI, which serves as a composite measure of manufacturing performance, takes into account indicators such as new orders, output, employment, suppliers' delivery times, and stocks of purchases. A reading above 50.0 indicates overall improvement in the sector. In May, the headline PMI rose to 52.3, up from 51.3 in April, marking the fourth consecutive month above the no-change mark of 50.0.
The improvement in business conditions in May was the most notable in ten months, the statement said.
The growth in new orders and improving demand conditions prompted firms to expand their production for the third consecutive month, although at a slower pace than before. In order to manage their workloads effectively, firms opted to dispatch finished products immediately rather than holding them in stock. As a result, post-production inventories fell for the first time in four months.
Anuar Ushbayev, managing partner and chief investment officer at Tengri Partners, said: "The success firms have been having in securing new orders had positive impacts across many of the PMI survey indicators in May. Production was raised again, boosted by a renewed expansion in employment. Most strikingly, the desire by firms to keep on top of workloads encouraged them to build up inventories of inputs to an extent unseen in the survey up until now.
"Firms are enjoying a spell of growth at present, and expressed confidence that this will continue in the months ahead thanks to positive forecasts regarding new orders."