Home ECONOMY LSM output declined 16.08 percent in April compared to March

LSM output declined 16.08 percent in April compared to March

LSM output declined 16.08 percent in April compared to March

KARACHI: Data released by the Pakistan Bureau of Statistics (PBS) revealed the large-scale manufacturing (LSM) sector registered a growth of 4.14 percent in April 2018 compared to corresponding period of last year.

This was mainly due to increased consumer demand in the food and beverages sector, which possessed the highest percentage in the quantum index of manufacturing grew 14.31 percent year-on-year in April 2018, reported The News.

On a monthly basis, food beverages and tobacco posted 2.97 percent growth, auto sector 1.64 percent, non-metallic mineral products including cement 1.51 percent, coke and petroleum products 1.12 percent.

However, iron and steel products posted a fall of 8.6 percent on a YoY basis in April 2018.

The pharmaceutical sector’s output nosedives 29.64 percent in April compared to corresponding period of last year.

Leather products output fell 17.58 percent, fertilizers 4.4 percent, chemicals 2.06 percent and engineering products 14.01 percent.

On a month-on-month (MoM) basis, LSM output sharply fell 16.08 percent in April compared to March.

During first ten months (July-April), LSM sector grew 5.76 percent against the annual target of 6.3 percent set for the outgoing financial year 2017-18.

Analysts are projecting yearly LSM growth rate to touch 5.8 percent, which would pinch economic growth forecast.

Borrowing and energy costs are increasing due to hike in petroleum prices and interest rates, analysts said.

Three data collection authorities recorded a rise in production in July-April of FY18.

The output trend measured of 36 items measured by the Ministry of Industries revealed a 5.5 percent rise in production. Oil Companies Advisory Council (OCAC) recording data of eleven oil and petroleum products determined 12.98 percent increase in outputs during the above-mentioned period.

And according to PBS, which gathered production data of 65 products said a 4.69 percent growth was recorded during July-April FY18.

The electronics sector posted the largest growth of 40.45 percent in July-April FY18, iron and steel products 22.82 percent, automobiles 19.68 percent, coke and petroleum products 12.98 percent, non-metallic mineral products 12.42 percent.

Also, paper and paperboard posted growth of 8.94 percent, rubber products 6.11 percent, food beverages and tobacco 3.74 percent, engineering products 3.27 percent, textile 0.43 percent and pharmaceuticals 0.78 percent.

Wood products production nosedived 34.32 percent in July-April FY18 followed by a decline in output of leather products 9.72 percent, fertilizers 7.95 percent and chemicals 0.44 percent.