The Finance Division anticipates that the large-scale manufacturing (LSM) sector will continue its recovery throughout the current fiscal year 2024-25 (FY25).
In its Monthly Economic Update & Outlook for July 2024, the Finance Division noted that LSM grew by 1.0 percent during Jul-May FY24, compared to a 9.6 percent contraction in the same period last year.
In May 2024, LSM recorded a year-on-year (YoY) growth of 7.3 percent and a month-on-month (MoM) growth of 7.5 percent, driven by strong performances in the food, apparel, leather, coke and petroleum products, chemicals, pharmaceuticals, and machinery and equipment sectors.
Additionally, cement dispatches increased by 1.6 percent in FY24, reaching a total of 45.3 million tonnes.
Domestic dispatches accounted for 38.2 million tonnes, reflecting a 4.6 percent annual decline, while exports totaled 7.1 million tonnes, marking a 55.7 percent annual increase.
However, compared to the previous year, local dispatches and exports decreased in June 2024, amounting to 3.1 and 0.58 million tonnes, respectively.
The automobile sector faced challenges due to high interest rates and import restrictions, leading to a 22.0 percent decrease in car production and a 15.7 percent decrease in car sales.
Similarly, truck and bus production and sales each declined by 30.5 percent.
“The recovery that began in the LSM is expected to persist throughout FY25, supported by a stable exchange rate, macroeconomic stability, and eased import restrictions,” the report stated.
