Islamabad: Large-scale manufacturing (LSM) in July 2024 recorded a 2.4% year-over-year growth, marking a recovery from a previous downturn and hinting at positive economic trends influenced by ongoing monetary easing.

According to JS Global, the performance of LSM in July is a notable improvement over June 2024, which had seen a decline, disrupting a six-month trend of growth. Despite a month-on-month dip of 2% in July, the year-over-year increase reflects a resilient industrial sector recovering from last year’s 5% decline, which was primarily driven by higher energy costs and consequent inflationary pressures.

The growth was uneven across various sectors, with textiles and wearing apparel industries experiencing increases of 8.4% and 9.6% respectively, powered by their significant shares in the LSM index. Other sectors such as food and petroleum products also showed positive growth, with wheat leading the food category with a 6.7% increase. The automobile sector, despite its smaller size in the index, surged by 72% year-over-year, showcasing substantial sector-specific expansion.