The recent data released by the Pakistan Bureau of Statistics reveals a jump in the production of Large Scale Manufacturing Industries (LSMI) for Jan’24, indicating a 1.8% increase compared to the SPLY.

LSMI Index stood at 132.4 during Jan’24 against 130.0 in SPLY. Additionally, on a MoM basis, LSMI remained flat.

The uptick in LSMI during Jan’24 marks the second successive month of improvement.

Year-to-date, LSMI has remained consistently in negative territory with a YoY decline of 0.5% (7MFY24) primarily attributed to several factors. These include the impact of high interest rates, substantial increases in energy prices, and low aggregate demand, all of which have contributed to a reduction in economic activities in the country.

The sector-wise increase during Jan’24 was led primarily by:

Chemicals (+19.2% YoY), Iron & Steel Products (+1.0% YoY), Wearing Apparel (+28.1% YoY), Pharmaceuticals (+16.6% YoY), Beverages (+2.0% YoY), Electrical Equipment (+1.5% YoY), Automobiles (+18.8% YoY), Leather Products (+10.4% YoY), Machinery and Equipment (+161.9% YoY), Other Manufacturing (+11.8% YoY), Wood Products (+27.0% YoY) and Rubber Products (+8.1% YoY).

The sector-wise decrease during Jan’24 was led primarily by:

Textile (-6.9%), Food (-3.9% YoY), Coke & Petroleum Products (-2.4% YoY), Non-Metallic Mineral Products (-9.8% YoY), Tobacco (-58.4% YoY), Paper & Board (-0.6% YoY), Other Transport Equipment (-10.4% YoY), Furniture (-13.7% YoY), Fabricated Metal (-13.5% YoY), and Computer, electronics and Optical products (-4.4% YoY).

Courtesy – AHL Research