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LSM Posts 4.08% Growth in First Quarter of FY2025-26, Showing Signs of Recovery

Large-scale manufacturing (LSM) showed signs of recovery in the first quarter of fiscal year 2025–26, recording an overall growth of 4.08%.

According to the data, LSM production increased by 4.08% during July–September compared to the same period last year. In September 2025, LSM output rose by 2.69% year-on-year, while in August 2025 it grew by 2.05%.

The contribution of key sectors to the total 4.08% growth—based on their Quantum Index of Manufacturing (QIM) weights—is as follows:
Food (0.91), Tobacco (0.05), Textiles (0.34), Garments (0.42), Paper & Board (0.13), Petroleum Products (-0.26), Chemicals (-0.19), Pharmaceuticals (-0.30), Cement (0.83), Iron & Steel Products (-0.16), Electrical Equipment (0.11), Machinery & Equipment (-0.04), Automobiles (1.84), Other Transport Equipment (0.20), and Furniture (-0.40).

During July–September 2025–26, production increased compared to last year in the following sectors:
Food (0.91%), Tobacco (0.04%), Wearing Apparel (0.42%), Non-metallic Mineral Products (0.81%), Electrical Equipment (0.11%), Automobiles (1.84%), and Other Transport Equipment (0.20%).

The following sectors recorded a decline:
Beverages (-0.05%), Chemical Products (-0.13%), Iron & Steel Products (-0.16%), Machinery & Equipment (-0.04%), and Furniture (-0.40%).

Experts say that although exports have not shown significant improvement, the domestic manufacturing sector is witnessing strong growth because the high dollar rate has pushed imported goods beyond public affordability. As a result, demand for locally manufactured products has increased

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