The Tengri Partners Kazakhstan Manufacturing Purchasing Managers' Index (PMI) for September has shown that improved growth momentum in the country's manufacturing sector was evident by the end of the third quarter.
The development was primarily attributed to success in securing new orders, which resulted in a robust expansion in production, Tengri Partners said. Consequently, companies in the sector increased their workforce and purchasing activities. At the same time, the survey recorded the fastest accumulation of purchased stocks ever seen in the PMI series.
September also brought an increase in the rate of input cost inflation, leading to the first rise in selling prices in four months. This suggests that manufacturers were able to pass on some of the increased input costs to customers.
The headline PMI score rose to 52.8 in September from 52.4 in August. The survey aggregate data related to new orders, output, employment, suppliers' delivery times and inventories of purchases. Any reading surpassing the 50.0 threshold indicates an overall improvement in the sector's health.
Anuar Ushbayev, managing partner and chief investment officer at Tengri Partners, said: "The Kazakh manufacturing sector went from strength to strength in September, seeing the fastest increase in output for six months as firms continued to be able to bring in greater volumes of new orders. One of the most notable aspects of the latest PMI survey was a record increase in stocks of purchases as firms responded to greater output requirements.”
"There were some signs of inflationary pressures picking up, although costs still rose at one of the softest rates in the survey so far. Output prices were increased for the first time in four months, but firms were keen to limit price rises amid stiff competition for new work," he added.