Kazakhstan’s services sector returned to growth in April, with business activity expanding at its fastest pace in nine months, according to the Freedom Holding Corp Kazakhstan Services PMI survey on the month published by S&P Global.

The headline Business Activity Index rose to 53.9 in April from 49.2 in March, moving back above the 50-point threshold that separates growth from contraction. The reading signalled the first expansion in service sector activity in three months.

Survey data showed that output growth was solid and the strongest since July 2025, supported by a sharp increase in new business across the sector. The report said companies experienced stronger demand conditions duringApril, contributing to higher activity levels and improved sales performance.

At the same time, firms faced accelerating cost pressures. Input cost inflation increased at a faster pace, approaching the peak levels recorded in January following value-added tax-related adjustments.

(Credit: Freedom Holding Corp, S&P Global).

Despite rising expenses, the pace of growth in prices charged to customers slowed, as some businesses adopted more competitive pricing strategies to support sales volumes and attract new clients.

Saltanat Mukhambetaliyeva, economics research and analytics head at Freedom Holding Operations, said: "Kazakhstan’s services sector recorded a sharp acceleration in April following three months of contraction, with the Business Activity Index rising to 53.9 (+4.8 points m/m), supported by an increase in new orders.

"Such a sharp monthly rise is atypical for the local market and has been observed primarily during post-shock recovery phases (notably the pandemic and 2022), warranting cautious interpretation. The improvement remains limited in scope and is not accompanied by a shift in underlying fundamentals, as reflected in continued caution in employment and increased restructuring activity.

"Cost pressures accelerated again, approaching January’s peak, with drivers shifting from tax-related factors towards higher wages and input costs. Growth was concentrated in real estate (supported by mortgage lending growth of +16% y/y) and business services, while consumer-facing and transport segments remained subdued. Twelve-month expectations remained in moderately optimistic territory and below the long-term average."