Q3 GDP numbers: Pent-up household demand fizzles out, shows data

Govt capex carries capital formation

India’s household consumption showed slight deceleration in the October-December FY23 quarter as a contributor to gross domestic product compared to the same period last year, indicating that the post-pandemic pent-up demand may have run its course, and that growth continues to be uneven.

The contribution of government-driven consumption to nominal GDP also reduced year-on-year for the third quarter in a row, while infrastructure investment continued its strong rebound after the pandemic on the back of the Centre’s capital expenditure push.

The data released by the National Statistical Office on Tuesday showed that private final consumption expenditure (PFCE), a proxy for