Kazakhstan's service providers stabilize

Kazakhstan's services sector showed the first signs of recovery in March. Although there is still no sign of a genuine upturn, the downward trend has weakened noticeably. This is indicated by the latest purchasing managers' index from Freedom Holding. The business activity index rose from 48.0 points in February to 49.2 in March. Although the value remains below the growth threshold of 50 points, it only signals a moderate decline in activity. The main reason for this was the slight increase in new orders. After a weaker phase, at least some demand returned. This helped companies to limit the decline in their business. According to Freedom Holding, the sector is currently adapting to two pressures at the same time: rising costs and subdued demand. On the positive side, however, cost pressures have recently eased. Input prices are approaching the level of the end of 2025 again, which indicates that inflationary pressure is easing. Companies' expectations for the next twelve months have also improved slightly. However, optimism remains cautious and is still below the long-term average. Some service providers continued to report declining business in March. They cited financing difficulties, the after-effects of the VAT increase at the start of the year and political uncertainty as reasons for this. At the same time, new customers and additional orders helped to cushion the downturn. Overall, the picture is mixed: the Kazakh service sector remains under pressure, but is gaining some stability. It remains an important pillar of the overall economy, particularly against the backdrop of weaker industry. The post Kazakhstan's service providers stabilize appeared first on ostwirtschaft.de.