Consumer spend sees first fall in 4 decades on weak rural demand: NSO data

In rural areas, it declined by 8.8% in 2017-18; in cities, it rose by 2% over 6 years

Somesh Jha New Delhi
Consumer spending

The survey was conducted by the NSO between July 2017 and June 2018

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. 

Also Read

From consumption to jobs: India's economic trouble explained in 6 charts

GDP data confirms demand slowdown; consumption expenditure at 17-qtr low

GDP shocker: At 5%, Indian economy grows slowest in over six years

Indian states' fiscal battle amid economic slowdown: Explained in 8 charts

GDP growth slips to five-year low on slowdown in investment, manufacturing

Oct wholesale inflation at 40-month low of 0.16% on cheaper non-food items

Amid economic slowdown, Moody's lowers India's 2019 growth forecast to 5.6%

Govt eases norms for opening bank account for migrants using Aadhaar KYC

Will pay farmers' dues even if defaulter sugar mills have to be sold: UP CM

Govt plans North East Industrial Corridor to boost jobs, tourism: Rajnath

First Published: Nov 14 2019 | 10:31 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to