Private consumption edges up in Q2; infra investment almost flat

PFCE, a proxy for household and private sector consumption, was 61.6% of nominal GDP in Q2FY23, as against 61.1% in the previous quarter and 59.5 per cent a year ago

India’s household consumption as a percentage of nominal gross domestic product (GDP) showed recovery in the July-September 2022 quarter (Q2FY23) compared with the same period last year. Infrastructure investment, on the other hand, remained almost flat, while government consumption showed a decline for a second straight quarter.

Private final consumption expenditure (PFCE), a proxy for household and private sector consumption, was 61.6 per cent of nominal GDP in Q2FY23, as against 61.1 per cent in the previous quarter and 59.5 per cent a year ago.

Gross fixed capital formation (GFCF) was 29.6 per cent of GDP in Q2FY23, as against