LSM growth stands at 1.14% in FY11

Karachi: The Large Scale Manufacturing (LSM) registered an insignificant growth of 1.14% in FY11 as compared to the corresponding period last year, on account of improved performance by the textile, automobile, electronic goods and sugar sector.

According to Alfalah Securities Limited, the large scale manufacturing (LSM) is being said to improve further as it witnessed a negative growth in the 1HFY11 and posted a growth of less than 1% in the 3QFY11. The Quantum Index Number of LSM indicated 208.25 points as on June 30, 2011 as compared to 205.89 points in the same period last year.

On the other hand, LSM has witnessed a negative growth of 2.95% on MoM basis in June 2011, mainly due to rising energy crisis and worst law and order situation which is also expected to continue within few initial months of the FY12. The breakup of LSM indicates that the positive growth in FY11 is mainly contributed by ministries of industries index by 3.56% while the Oil Companies Advisory Committee (OCAC) and Bureau of Statistics (BOS) index has witnessed a negative growth of 2.27% and 2.09% respectively.