Latest data released by PBS suggests that Large Scale Manufacturing Industries (LSMI) output remained flattish on MoM as well as YoY basis, during Sep’22, with a meagre uptick of 0.1% MoM and 0.01% YoY. LSMI Index stood at 115 during Sep’22; 113.4 during 1QFY23 (1QFY22: 113.8). With this, during 1QFY23, LSMI posted a decline of 0.4% YoY. This quarterly YoY decline has been witnessed after 1QFY21 (-2.6% 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, tobacco, automobile and petroleum.

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

Chemicals (9.7% YoY), Wearing Apparel (52.2% YoY), Beverages (11.6% YoY), Paper & Board (58.5% YoY), Leather Products (5.0% YoY), Furniture (54.3% YoY), Other Manufacturing (69.6% YoY) and Wood Products (7.2% YoY).

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

Textile (-2.5% YoY), Food (-3.2% YoY), Iron & Steel Products (-7.0% YoY), Non Metallic Mineral Products (-1.0% YoY), Fabricated Metal (-24.6% YoY), Coke & Petroleum Products (-24.4% YoY), Automobiles (-53.2% YoY), Computer and electronics (-18.4% YoY), Rubber Products (-13.9% YoY) Pharmaceuticals (-22.5% YoY), Tobacco (-10.8% YoY), Machinery and Equipment (-34.1% YoY), Electrical Equipment (-2.0% YoY), and Other transport Equipment (-43.2% YoY).

Courtesy – AHL Research