Islamabad: Large Scale Manufacturing (LSM) in Pakistan recorded a 1.9% year-over-year decrease in September 2024, marking the second consecutive month of negative growth following a year-over-year increase in July 2024.

According to JS Global, despite the overall decline, some sectors showed notable improvements during the month. However, sectors such as Non-Metallic Minerals, Iron & Steel, and Chemical Products experienced significant contractions at -18.1%, -10.7%, and -14.6% respectively, highlighting ongoing challenges.

A trend of disinflation is creating a potentially favorable environment for LSM growth by likely improving demand and stabilizing production. However, rationalized imports and rising energy costs are identified as key downside risks to the LSM growth outlook.