Growth in business activity saw another month of “marginal” expansion in Kazakhstan’s service sector in March, according to purchasing managers’ index (PMI) data released by Freedom Holding and S&P Global on April 3.

"The Freedom Holding Corp. PMI produced by S&P Global signalled another month of marginal expansion in business activity across the Kazakh service sector during March. The uptick in activity was accompanied by a modest rise in new business, thereby extending the current run of increase to five months," the statement accompanying the PMI data said. 

The seasonally adjusted PMI services index for March rose to 50.3 from 50.2 in February (any reading below 50.0 indicates a contraction in business activity).

The statement also noted that "rates of [cost] inflation were historically strong, as sharply rising cost burdens fed through to a stronger increase in charges".

On a more positive note, it said service industry forecasts for activity over the next 12 months were the strongest in almost a year.

Yerlan Abdikarimov, director of the financial analysis department at Freedom Finance Global (100% subsidiary of Freedom Holding), commented: "The services sector in Kazakhstan continues to show high sensitivity to changing market conditions. At 50.3 points in March, the seasonally adjusted Business Activity Index showed a slight improvement over the month and remains close to the neutral line.

"Despite a more pronounced growth in new business compared to February, there has been a reduction in new hiring for the first time in the past seven months. Inflationary pressure in the services sector eased, with a more noticeable slowdown in the growth of selling prices recorded. Meanwhile, cost pressures remain sharp. Expectations for the near future reached a 12-month high, indicating an increase in optimism in the sector."