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    Consumer spending falls for first time in over four decades, says report

    Consumer spending falls for first time in over four decades, says report

    Consumer spending falls for first time in over four decades, says report
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    By CNBC-TV18  IST (Published)

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    Consumer spending in India declined for the first time in over 40 years in 2017-18, dragged mainly by falling demand in rural areas where spending dropped by 8.8 percent in the period, reported Business Standard, citing a survey by the National Statistical Office.

    Consumer spending in India declined for the first time in over 40 years in 2017-18, dragged mainly by falling demand in rural areas where spending dropped by 8.8 percent in the period, reported Business Standard, citing a survey by the National Statistical Office. However, in urban areas, consumer spending rose by 2 percent over six years, it added.
    Monthly per capita consumption expenditure (MPCE)—the average amount of money spent by a person in a month—declined by 3.7 percent to Rs 1,446 in 2017-18, compared to Rs 1,501 during 2011-12, noted Business Standard, citing the survey titled 'Key Indicators: Household Consumer Spending in India'.
    The MPCE figures are in real terms, keeping 2009-10 as the base year. The real MPCE had increased 13 percent over a period of two years, added the news report.
    The NSO report showed that food consumption has also declined in India, which is a worrying trend and raise concerns of malnutrition in the nation, said Business Standard quoting experts.
    In rural areas, food consumption fell to Rs 580 per month in 2017-18, down 10 percent from Rs 643 a month in 2011-12, noted the report. Food consumption in cities stood at Rs 946 a month in 2017-18, compared to Rs 943 per month in 2011-12, it added.
    The NSO report also observed that, in rural areas, people reduced spending on food items, except milk and related products, reported the newspaper, adding that people across the country, including in urban areas, cut spending on essential cooking items.
    The survey was conducted between July 2017 and June 2018 and the NSO report was approved for release by a committee on June 19, 2019, added the newspaper. However, the report was not released due to its "adverse findings", reported Business Standard, citing four people aware of the development.
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