Kazakhstan's industry under pressure

Kazakh industry came under significant pressure in March. According to the latest PMI data from S&P Global and Freedom Holding, the situation in the manufacturing sector deteriorated noticeably - more than in the past four years. The Purchasing Managers' Index (PMI) fell to 47.4 points, remaining below the growth threshold of 50 for the third month in a row. The decline in production, which accelerated again in March, was particularly significant. Many companies reacted to weaker incoming orders and financial bottlenecks by cutting back on their activities. New orders also continued to fall, albeit less sharply than in the previous month. This suggests that although demand remains weak, it may be stabilizing. The weaker capacity utilization has now also left its mark on the labour market. Manufacturers have reduced their workforces more than they have in over two years - a clear sign of the ongoing pressure in the sector. At the same time, companies are reporting cautious optimism: some are seeing the first signs that demand could recover in the further course of the year. A ray of hope can be seen in prices. Following the sharp rises at the beginning of the year, inflationary pressure has eased recently, even though the effects of the VAT increase are still being felt. Supply chains, on the other hand, remain a burden. Poor weather conditions and geopolitical tensions have once again extended delivery times and are making planning more difficult for many companies. Overall, the picture is mixed: the industry is currently clearly in a weak phase, but initial signs of stabilization are raising hopes of a cautious recovery in the coming months. The post Kazakhstan's industry under pressure appeared first on ostwirtschaft.de.