Kazakhstan's manufacturing sector saw a sharp acceleration in growth in December. Record rises in output and orders as well as growing purchasing activity and employment were registered by the monthly Kazakhstan Manufacturing Purchasing Managers' Index (PMI).

The PMI was recorded at 53.9, above the 50.0 no-change mark and up from October’s 53.5. The sector growth acceleration and improvement in business conditions were the best recorded since the survey, presently compiled by produced by S&P Global and Freedom Holding, was started six years ago.

“Demand improvements resulted in record increases in both new orders and manufacturing production, with firms responding by raising purchasing activity and employment. Meanwhile, cost inflation quickened again but output prices increased at a slightly slower pace than in November, and one that was weaker than the series average,” an accompanying statement issued with the PMI data said.  

Yerlan Abdikarimov, director of the financial analysis department at Freedom Finance Global (a 100% subsidiary of Freedom Holding), commented: "Kazakhstan's manufacturing industry is ending the year at a historic high, achieving record growth in production volumes and new orders. The price factor remains relevant: the acceleration of cost inflation has led to an increase in selling prices. However, the fact that the growth rate in both cases remained below the historical average adds a sense of optimism.

"Despite rising raw material costs and ongoing logistics challenges, manufacturers have maintained their purchasing activity and hiring efforts. Finished goods stocks have rebounded for the first time in seven months, concluding a prolonged period of depletion. Industry representatives remain optimistic about 2025, planning to expand production in anticipation of further demand growth."