NEW DELHI, November 4: Growth in Kazakhstan’s services sector slowed for a third month in October to its weakest in seven months, while firms cut jobs at the fastest rate in nearly three years and faced rising costs, according to the Freedom Holding Corp. Kazakhstan Services PMI compiled by S&P Global and released on Wednesday.
Key highlights
- The Business Activity Index fell to 50.6 in October from 51.4 in September, signalling only a marginal rise in output.
- New business was unchanged on the month, ending a seven-month run of growth.
- Employment fell; firms have cut staff in 12 of the last 14 months, and October’s job shedding was the steepest in nearly three years.
- Input price inflation was marked and well ahead of the rise in selling prices.
- An easing of the manufacturing downturn lifted the composite PMI to the 50.0 neutral mark, according to the survey sponsor.
| Indicator | October 2026 | Direction |
|---|---|---|
| Services Business Activity Index | 50.6 (Sept: 51.4) | Growth, weakest in 7 months |
| New business | Unchanged | Seven-month expansion ended |
| Employment | Lower | Steepest cuts in nearly 3 years |
| Input prices | Rising sharply | Faster than selling prices |
| Selling prices | Rising modestly | — |
What firms said
Some firms reported more business, but others cited fewer customers, weak demand and greater competition. Business confidence weakened at the start of the final quarter. Saltanat Mukhambetaliyeva, head of economics research at Freedom Holding Operations, said October saw “a further slowdown in growth in Kazakhstan’s service sector amid weakening demand and mounting cost pressures”, adding that expectations for the year ahead were weakest among small businesses.
Our calculation
- The index has dropped 0.8 points in a month and is now just 0.6 points above the 50.0 line that separates growth from contraction.
- With costs rising faster than prices, service firms’ margins are being squeezed.
What it means
Kazakhstan is Central Asia’s largest economy and a key link in trade routes between China, Russia, the Caspian region and South Asia. A slowdown in services, combined with job cuts and cost pressure, points to softer consumer demand heading into the winter months. For India, which is building ties with Central Asia through connectivity and energy projects, the region’s demand trends matter for future trade.
What to watch
- Kazakhstan’s official inflation and growth figures for October.
- Whether new business returns to growth in November’s survey.
A view of Astana, the capital of Kazakhstan. Image: Alex J. Butler from United Kingdom, CC BY 2.0, via Wikimedia Commons. Photo source · Licence
Sources
The Business Desk covers markets, the economy, companies and personal finance. Stories are checked against at least two credible sources before publication.
