Latest data released by PBS suggests that Large Scale Manufacturing Industries (LSMI) output increased 3.6% on MoM basis while down 5.5% YoY during Nov’22. LSMI Index stood at 112.3 during Nov’22; 111.4 during 5MFY23 (5MFY22: 115.6). With this, during 5MFY23, LSMI posted a decline of 3.6% YoY. Measures taken by the monetary and fiscal authorities to slow-down the aggregate demand along with rising cost of doing business led to decline of LSMI as evident from decline in production numbers of textile, paper, food, automobile and petroleum.

Sector-wise increase during Nov’22 was led primarily by:

Coke & Petroleum Products (5.3% YoY), Wearing Apparel (49.7% YoY), Beverages (10.0% YoY), Leather Products (9.8% YoY), Furniture (36.4% YoY), and Other Manufacturing (55.6% YoY).

Sector-wise decrease during Nov’22 was led primarily by:

Chemicals (-7.1% YoY), Textile (-22.0% YoY), Food (-13.6% YoY), Iron & Steel Products (-8.7% YoY), Non Metallic Mineral Products (-13.1% YoY), Automobiles (-19.0% YoY), Rubber Products (-9.3% YoY) Pharmaceuticals (-8.3% YoY), Machinery and Equipment (-56.1% YoY), Tobacco (-20.3% YoY), Electrical Equipment (-3.3% YoY), Paper & Board (-1.8% YoY), and Wood Products (-80.5% YoY) and Other transport Equipment (-41.0% YoY).

Courtesy- AHL Research