Growth in Kazakhstan services was sustained for a second successive month in April, according to the latest purchasing managers’ index (PMI) survey data on the sector from S&P Global, released on May 6.

The survey’s seasonally adjusted business activity index posted above the neutral 50.0 mark at 50.7 for April, down from 51.0 in March.

Maryam Baluch, an economist at S&P Global Market Intelligence, said: "Kazakh service firms registered gains at the start of the second quarter. Growth in new business and activity was sustained, albeit the rates of increase eased slightly from those seen in March.

“Price gauges signalled subdued inflationary pressures. Cost burdens rose at a softer pace, allowing some firms to offer more competitive rates to their clients. However, April data highlighted the difficulties firms faced in retaining staff, with voluntary resignations being a key driver of the latest drop in employment.

“Finally, service providers were generally upbeat regarding the outlook for activity in the coming year. That said, expectations weakened to an 11-month low."

Though intakes of new business rose at a moderated pace, latest data highlighted continued improvement in underlying demand trends, S&P noted.

Responses on the outlook for the remainder of 2024 from services companies in Kazakhstan, Central Asia’s largest economy, put the future activity index at just above the long-run average.