Kazakhstan’s services sector recorded a renewed rise in sector activity in December, following the first contraction seen within a nine-month period in November, according to the business activity reading of the Tengri Partners purchasing managers' index (PMI).

The reading showed a PMI score of 51.4 in December, up from 49.2 registered in November. Any reading above 50 indicates an expansion.

Anuar Ushbayev, managing partner and chief investment officer at Tengri Partners, said: "The Kazakh service sector ended 2023 on a positive note, with latest data revealing fresh expansions in activity, new business and employment. Moreover, despite cost burdens growing at an intensified pace, charges were raised at a relatively weaker rate. Competitive pricing will also help to generate more sales in the months ahead.”

“Moreover, business confidence remained historically strong, despite easing slightly in December. Firms were hopeful that demand conditions will continue to improve in the coming months and had plans of investment. Lastly, the visa free travel between mainland China and Kazakhstan that came into effect in November, will also promote activity," he added. 

Looking ahead, PMI survey data showed business confidence across Kazakhstan's service sector remained heightened, despite easing slightly to a three-month low in December. More than half of panellists predicted growth in activity over the next 12 months, with expectations pinned on hopes of improved demand conditions and new contract wins.