ISLAMABAD: Large-scale manufacturing (LSM) posted a negative growth of 7.75 per cent in October this year over the same month last year.

This was the second consecutive month this year to have posted a negative growth rate, according to data released by the Pakistan Bureau of Statistics on Thursday.

The deceleration in industrial output during the current fiscal year indicates that economic growth will slip further in the next quarter. It is estimated that the second quarter will be more disturbing owing to suspension of gas supplies to industrial units in winter.

There was a negative growth of 2.27pc in September on a year-on-year basis, compared to a sluggish growth of 0.30pc in August and a negative growth of 1.67pc in July, the first month of the current fiscal year.

Between July and October, LSM also posted a negative growth of 2.89pc on a year-on-year basis.

Economists have been raising concerns about a slowdown caused by record energy and raw material prices. Moreover, export-based manufacturers have already hinted at a decline in their productions due to higher cost of energy and other inputs.

The main contributors to the slowdown in October were automobiles (down 30.56pc), cotton yarn (27.04pc), cotton cloth (11.91pc), garments (34.14pc), petroleum products (15.04pc), fertilisers (9.80pc), cement (10.48pc), and iron & steel (8.45pc).

The output of 16 sectors shrank, and only six posted growth, albeit marginal.

Textile sector

In October 2022, the textile sector shifted into reverse gear, shrinking by 24.62pc over the previous year. Major negative growth originated from yarn (down 27.05pc), cloth (down 11.91pc) and woolen blankets (78.13pc). Nominal growth was reported in the output of other products.

Published in Dawn, December 16th, 2022