LSM growth turns negative in March

ISLAMABAD: Large-scale manufacturing (LSM) posted a negative growth of 2.68 in March 2014 over the same month last year, reflecting a contraction in the sector during the current financial year. The decline in output during the month under review is a matter of concern because the manufacturing sector posted a positive growth over the past few months, according to data released by the Pakistan Bureau of Statistics on Thursday. This reverse in manufacturing sector growth was mainly driven by decline in eight categories of items. The government has yet to give reasons for the decline, but the only explanation being presented was disruption in supply of energy to industrial units in Punjab. A major contribution towards negative growth in LSM performance in March was from food and beverages 8.39pc; paper and board 2.14pc; electronics 17.83pc; chemicals 1.18pc; non metallic mineral products 6.19pc; wood products 22.26 pc; engineering products 15.81pc and pharmaceuticals 2.05pc. Last year, the LSM sector, which accounts for 70pc of industrial production, recorded a positive growth of 3.79pc. Some sectors, like textile, witnessed a growth of 1.15pc, petroleum products 2.10pc; fertilisers 4.14pc; iron and steel products 2.75pc; leather products 14.70pc; rubber products 20.91pc and automobiles 3.79pc during the month under review. During the first nine months of the current fiscal year (July-March), the LSM grew by 4.34pc in July-March 2014 this year over the corresponding months of last year. Industry-specific data showed that many sub-sectors didn’t perform well in March this year. Production of refrigerators recorded a negative growth of 23.01pc; air conditioners 42.42pc; electric bulbs 21.32pc; electric fans 87.91pc; switch gears 33.33pc; electronic transformers 79.21pc; storage batteries 12.41pc; generating sets 100pc; and bicycles 3.62pc. However, the production of deep freezers was up by 14.65 pc in March 2014; electric motors pc18.80, electric meters 49.72pc; TV sets 12.81pc during the month under review over the same month last year. The growth was witnessed in case of food, beverages and tobacco. The sector has adjusted weightage of 12.37pc in LSM basket. Vegetable ghee production increased by 1.31pc; oil 3.02pc; and tea blended 16.76pc. The production of tractors trucks was up by 14.51pc; trucks 58.64; jeeps and cars 0.61pc; and cars 2.25pc; LCVs 29.82pc and motor cycles 2.23pc during the month under review. However, production of buses was down by 30pc in March this year. Published in Dawn, May 23rd, 2014