This could be attributed to gradual easing in monetary policy and fiscal support as well as the impact of increase in farm incomes in FY09. LSM sector is the one of the major indicators of the economy, which shows industrial productivity of 100 items received from different sources ie Oil Companies Advisory Committee (OCAC), Ministry of Industries & Production and Provincial Bureaus of Statistics.
The OCAC supplied data of 11 items, Ministry of Industries & Production supplied data of 35 items and Provincial Bureaus of Statistics provided data for 54 items. With 0.66 percent growth, overall QIM indices reached 192.3 points in July-November of fiscal year 2009-10 from 191.05 points in the same period of last fiscal year 2008-09.
Major share in this growth has been contributed by industries, as during the five months the Ministry of Industries index went up by 1.28 percent to 188.82 points, relative to 0.69 percent decline in the same period of last fiscal year. Similarly, provisional BOS index reached 206.80 points with an increase of 0.93 percent in the five months of current fiscal year.
However, oil sector presented poor performance and OCAC index declined by 7.1 percent in July-November of 2009-10 as compared to 16.93 percent growth in corresponding period of last fiscal year. Presently, OCAC index declined to 151.44 points from 163.02 points.
Month on month basis, LSM index witnessed a growth of 0.28 percent to 191.61 points in November 2009 as against 191.06 points in corresponding period of last fiscal years. On cumulative basis, cement, automobiles, leather, rubber, electronics were few sectors that recorded net improvement in production in July-November FY10.
The production of furnace oil, kerosene oil and LPG decreased by 15.14 percent, 25.76 percent and 9.07 percent respectively, while the jet fuel oil, motor spirit and lubricant oil surged by 2.10 percent, 1.78 percent and 1.05 percent respectively during July-November of current fiscal year.
In addition, production of sugar, cigarettes, cotton yarn, caustic soda, billets and trucks production registered decline of 5.33 percent, 9.55 percent, 2.37 percent, 18.16 percent, 10.87 percent and 5.91 percent respectively during five months, while motorcycle, tractors and sole leather production increased by 47.52 percent, 30.17 percent and 109.52 percent respectively.