Consumer spending fell for the first time in more than four decades in 2017-18, primarily driven by slackening rural demand, according to the latest consumption expenditure survey by the National Statistical Office (NSO).
The survey — Key Indicators: Household Consumer Expenditure in India — shows the average amount of money spent by a person in a month fell by 3.7 per cent to Rs 1,446 in 2017-18 from Rs 1,501 in 2011-12. The figures for monthly per capita consumption expenditure (MPCE) are in real terms, meaning these have been adjusted for inflation, keeping 2009-10 as the base year. In 2011-12, the real MPCE had risen 13 per cent over a period of two years.
Experts said a dip in consumption expenditure indicated an increasing prevalence of poverty in the country. The data set also corroborates a shortage of demand in the economy, driven by the rural market.
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