LSM finds a higher base

Large-scale manufacturing grew 3 percent year on year in July, according to Business Recorder, but the LSM index itself reached 119.13, the strongest July level on record. That figure sits above the previous July high of 115.62 seen in FY26 and well above the FY22 level. The reading suggests industry is moving beyond simply recovering from the earlier downturn.

The composition of that growth is changing. Wearing apparel expanded 22 percent year on year and supplied nearly two-thirds of the index increase despite carrying only about 6 percent weight. A large part of July's garment result came from exceptionally strong export quantities of 8.74 million dozen pieces, but that momentum faded in August, when exports showed virtually no YoY growth.

Automobiles delivered the second-largest contribution to July growth, with output up 57 percent year on year on top of strong growth in the same month last year. Petroleum products also helped, as local refineries ran at considerably higher capacity and domestic output nearly met HSD requirements. Food slipped into negative territory after a sugar-led surge, while pharmaceuticals and chemicals were among the weaker sectors and textiles were marginally down.