The Kazakh manufacturing sector signalled further growth in July following the growth seen in June and May after a period of disruption caused by the outbreak of war in Ukraine and subsequent imposition of sanctions on Russia, according to the latest purchasing managers' index (PMI) survey data from Tengri Partners and IHS Markit.
The index posted 52.8 in July, after posting 53 in June. The headline Kazakhstan Manufacturing PMI is a composite single-figure measure of manufacturing performance. Any figure below 50.0 represents a deterioration. Growth was marked by new orders expanding “at a near-record pace” as firms expanded purchasing activity and employment more quickly than in June.
However, the survey noted that the output growth rate softened due to ongoing supply-chain disruption driven by sanctions against Russia and sharply rising prices.
Anuar Ushbayev, managing partner and chief investment officer at Tengri Partners said: "There was further good news for manufacturers in Kazakhstan in July as new order volumes continued to increase rapidly, feeding through to faster job creation and another record expansion of input buying.”
"In fact, the main issue being faced by firms at present seems to be keeping up with demand as ongoing logistical difficulties and price pressures meant that output rose only modestly. In July, manufacturers were able to continue meeting demand through the use of warehouse inventories, but with some firms reportedly selling out of finished products, ramping up production over the month ahead will be key if they are to keep on top of workloads," he added.