Latest data released by PBS suggests that Large Scale Manufacturing Industries (LSMI) output has witnessed an increase of 37% YoY during May’21, which is attributable to the low base SPLY when there was a national lockdown on account of COVID. LSM Index currently stands at 139.55 compared to 101.98 SPLY. However, for four consecutive months the index has posted negative growth MoM with the the LSMI Index posting a decline of 4% MoM during May’21. Some of the monthly downtrends include 57% MoM decline in Sugar, 10% MoM decline in Wheat and grain milling, 17% MoM decline in Motor Spirits and 10% MoM decline in Furnace Oil. The YoY increase during May’21 is primarily attributable to a low base effect on account of a lockdown last year, and is led by;

1. Textile (+48% YoY)

2. Food, Beverages and Tobacco (+15% YoY)

3. Coke & Petroleum (+4% YoY)

4. Iron and Steel products (+40% YoY)

5. Automobiles(+409% YoY)

6. Fertilizer (+13% YoY)

7. Pharmaceuticals (+15% YoY)

Rubber Products was the only category that witnessed a decline of 15% YoY.

Courtensy – AHL Research