Latest data released by PBS suggests that Large Scale Manufacturing Industries (LSMI) output has witnessed an increase of 2.3% YoY during Jul’21. LSM Index stood at 138.01 during Jul’21 compared to 134.97 SPLY. On yearly basis, OCAC output witnessed a decrease of 3.6% YoY, while MoI and Provincial BOS posted an increase of 1.4% YoY and 5.2% YoY, respectively.

Sector wise increase during Jul’21 was led by;

1. Textile (+1.2% YoY)

2. Food, Beverages and Tobacco (+0.6% YoY)

3. Iron and Steel products (+11.3% YoY)

4. Automobiles (+44.6% YoY)

5. Fertilizer (+3.5% YoY)

6. Pharmaceuticals (+10% YoY)

7. Chemicals (+13.6% YoY)

8. Leather Products (+11.7% YoY)

9. Wood Products (+24.2% YoY)

10. Engineering Products (+5.6% YoY)

The categories that witnessed a decline during Jul’21 were:

1. Coke & Petroleum Products (-3.6% YoY)

2. Non Metallic Mineral Products (-10.4% YoY)

3. Paper & Board (-8.8% YoY)

4. Rubber Products (-33.5% YoY)

During Jul’21, on a monthly basis, all three sub-indices of LSMI showed decline in the monthly growth: OCAC -5.7% MoM, MoI -6% MoM and Provincial BOS -2.4% MoM. To recall, LSMI posted a MoM jump last month (0.4% MoM), after witnessing four consecutive months of negative MoM growth. However, it has yet again entered the negative territory with 5% MoM decline recorded during Jul’21 being fueled by a 15% MoM decrease in Petroleum Products, Cement (-21% MoM), Vegetable Ghee (-14% MoM), to name a few.

Courtesy – AHL Research