Kazakhstan’s services sector in August recorded a decline in business activity, according to an accompanying statement put out with latest purchasing managers' index (PMI) survey data gathered by S&P Global.

The PMI for services in August fell to a six-month low of 48.5 from July’s 51.4. Anything above 50.0 represents an expansion in the sector, while anything below 50.0 stands for a contraction.

“The modest downturn was recorded as firms struggled to increase their services offered amid a weakening demand environment. New business received at service firms registered a fresh decline, thereby ending a five-month sequence of growth,” the statement said.

“The weaker demand trends in the sector meant that firms refrained from raising their staffing levels. Marginal contractions in employment have now been noted in the last three survey periods,” it added.

Maryam Baluch, an economist at S&P Global Market Intelligence, said: "The Kazakh service sector showed signs of weakness as the third quarter of the year progressed, as demand conditions deteriorated and firms struggled to raise their activity levels.”

"However, if the fractional decline in new orders can be reversed in the coming months, it will help to support growth in activity through the remainder of the year. Moreover, price pressures remained at bay, despite creeping up again on the month. A subdued inflationary environment will also aid expansions. Lastly, Kazakh service providers felt more optimistic regarding the year ahead outlook for activity,” she concluded.