Pakistan’s Large Scale Manufacturing Industries (LSMI) output increased 1.5% on MoM basis while down 7.9% YoY during Jan’23, according to data released by Bureau of Statistics.
LSMI Index stood at 126.9 during Jan’23; 115.5 during 7MFY23 (7MFY22: 120.8). With this, during 7MFY23, LSMI posted a decline of 4.4% 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, machinery, automobile and petroleum.
Sector-wise increase during Jan’23 was led primarily by:
- Wearing Apparel (32.3% YoY) and
- Other Manufacturing (27.9% YoY).
Sector-wise decrease during Jan’23 was led primarily by:
- Textile (-14.2% YoY),
- Coke & Petroleum Products (-1.8% YoY),
- Furniture (-38.0% YoY),
- Fabricated Metal (-8.4% YoY),
- Rubber Products (-8.1% YoY),
- Beverages (-0.2% YoY),
- Leather Products (-1.5% YoY),
- Chemicals (-17.4% YoY),
- Iron & Steel Products (-8.8% YoY),
- Non Metallic Mineral Products (-0.2% YoY),
- Automobiles (-60.5% YoY),
- Pharmaceuticals (-23.9% YoY),
- Machinery and Equipment (-71.3% YoY),
- Tobacco (-11.7% YoY),
- Electrical Equipment (-15.5% YoY),
- Paper & Board (-9.4% YoY),
- Wood Products (-75.3% YoY) and
- Other transport Equipment (-31.5% YoY).
The Large Scale Manufacturing Index (LSMI) is an economic indicator that measures the performance of the manufacturing sector of a country. It is typically calculated on a monthly or quarterly basis by tracking the changes in the production of a basket of large-scale manufacturing industries.
The LSMI is considered an important indicator of the overall health and growth of an economy, as it reflects the level of industrial activity and the contribution of manufacturing to GDP.