The latest data released by PBS suggests that Large Scale Manufacturing Industries (LSMI) output decreased 9.1% on a MoM basis while down 25.0% YoY during Mar’23. LSMI Index stood at 115.3 during Mar’23; 116.6 during 9MFY23 (9MFY22: 126.9). With this, during 9MFY23, LSMI posted a decline of 8.1% YoY. Measures taken by the monetary and fiscal authorities to slow down the aggregate demand along with the rising cost of doing business led to the decline of LSMI as evidenced by a decline in production numbers of textile, paper, machinery, automobile and petroleum.

The sector-wise increase during Mar’23 was led primarily by:

Wearing Apparel (11.0% YoY), Beverages (1.4% YoY) and Other Manufacturing (29.0% YoY).

The sector-wise decrease during Mar’23 was led primarily by:

Textile (-30.7% YoY), Coke & Petroleum Products (-42.5% YoY), Furniture (-10.6% YoY), Fabricated Metal (-21.8% YoY), Rubber Products (-12.8% YoY), Leather Products (-6.9% YoY), Chemicals (-16.8% YoY), Iron & Steel Products (-5.1% YoY), Non Metallic Mineral Products (-22.2% YoY), Automobiles (-68.0% YoY), Pharmaceuticals (-28.1% YoY), Machinery and Equipment (-24.7% YoY), Tobacco (-49.7% YoY), Electrical Equipment (-24.5% YoY), Paper & Board (-19.9% YoY), Wood Products (-6.0% YoY) and Other transport Equipment (-48.4% YoY).

Courtesy – AHL Research