Latest data released by PBS suggests that Large Scale Manufacturing Industries (LSMI) output during May’23 increased by 5.9% on MoM basis while down 14.4% YoY. LSMI Index stood at 110.6 during May’23 against 129.2 in May’22. Moreover, during 11MFY23, LSMI output stood at 115.0 (11MFY22: 127.6). This marks a 9.9% decline in LSMI output during the out-going 11Ms of FY23. The decline in LSM during 11MFY23 can be attributed to factors such as: policy actions taken by the monetary and fiscal authorities to slow down aggregate demand and the rising cost of doing business.

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

Textile (-26.0% YoY), Coke & Petroleum Products (-21.9% YoY), Chemicals (-14.2% YoY), Pharmaceuticals (-38.6% YoY), Beverages (-5.3% YoY), Iron & Steel Products (-5.8% YoY), Automobiles (-68.6% YoY), Tobacco (-22.4% YoY), Electrical Equipment (-24.6% YoY), Paper & Board (-5.8% YoY), Leather Products (-0.3% YoY), Other Transport Equipment (-35.0% YoY), Furniture (-36.4% YoY), Fabricated Metal (-20.6% YoY), Machinery and Equipment (-49.2% YoY), Rubber Products (-5.8% YoY), Wood Products (-9.1% YoY) and Computer, Electronics and Optical Products (-42.8% YoY).

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

Food (+9.5% YoY), Wearing Apparel (+12.9% YoY), Non-Metalic Mineral Products (+0.5% YoY), and Other Manufacturing (+36.4% YoY).

Courtesy- AHL Research