Comment of Director of the Monetary Policy Department of the National Bank of the Republic of Kazakhstan Zhandos Shaimardanov Concerning Business Activity Index in August 2021

Results of received estimates demonstrate that business activity index in August fell down to 50.2 (from 50.8 in July).

The index was affected by a fall of the parameter in the service sector down to 50.7 (from 51.1 in July) and industry down to 49.1 (from 50.5 in July). Deteriorated index in the service sector is attributed to a declining employment rate, while in the industry it is connected with contraction of new orders, new products and employment rate as well as increased delivery times.

However, the indicator in the construction sector rose to 51.9 (from 50.1 in July) due to a growing employment rate.

In terms of regions, August saw improved business activity in 9 regions and deterioration in 8. The highest level of business activity is reported in Turkestan Region (54.6) and Shymkent City (52.8), the lowest is in Aktobe Region (43.2).

In August 2021, respondents highlighted worsening business environment in the country. Balance of answers related to assessment of the current business conditions stood at 1.7 (0.5 in July), which is attributed to softening of some quarantine measures in Kazakhstan. Enterprises positively evaluated demand for products/ services, access to communications and finance/ loans. Issues of business protection and tax burden received negative assessments.

Optimism of enterprises with regard to the future business conditions for the next 6 months worsened: assessment of future conditions was 17.6 (21.1 in July). As a result, business climate index for the economy fell to 9.5 (from 10.5 in July).

In August 2021, the survey covered 462 enterprises: 67 in construction, 175 in industry, 220 in service sector.

For more details please visit: https://nationalbank.kz/en/page/indeks-delovoy-aktivnosti-po-kazahstanu-ida