The latest data released by PBS suggests that Large Scale Manufacturing Industries (LSMI) output witnessed an uptick of 3.9% MoM during Aug’22. On YoY basis, LSMI posted slight improvement, increasing marginally by 0.6% during Aug’22. LSMI Index stood at 114.8 during Aug’22 compared to 114.1 SPLY. With this, during 2MFY23, LSMI posted a decline of 0.4% 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 Aug’22 was led primarily by:

Chemicals (6.8% YoY), Wearing Apparel (74.3% YoY), Iron & Steel Products (10.3% YoY), Leather Products (6.9% YoY), Furniture (137.9% YoY), Other Manufacturing (66.1% YoY) and Wood Products (5.7% YoY).

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

Textile (-5.0% YoY), Food (-8.4% YoY), Non Metallic Mineral Products (-5.9% YoY), Fabricated Metal (-13.3% YoY), Coke & Petroleum Products (-26.8% YoY), Automobiles (-30.8% YoY), Computer and electronics (-8.1% YoY), Rubber Products (-3.8% YoY) Pharmaceuticals (-29.4% YoY), Tobacco (-18.2% YoY), Machinery and Equipment (-27.6% YoY), Electrical Equipment (-7.0% YoY), Paper & Board (-8.2% YoY), Beverages (-1.8% YoY) and Other transport Equipment (-34.8% YoY).

Courtesy – AHL Research