June quarter's household consumption, capital investment rise, shows data

Government consumption falls in April-June quarter; inflation and supply chain disruption impacts corporate balance sheets

In spite of inflationary pressures due to the war in Europe, India’s household consumption and capital investment recovered strongly in the April-June quarter (Q1FY23), official data showed. Government consumption, however, fell as a percentage of GDP.

Household and private sector consumption, as measured by Private Final Consumption Expenditure (PFCE), came in at Rs 39.7 trillion in nominal terms in Q1FY23, compared with Rs 28.4 trillion for the same period last year, and Rs 39.2 trillion in Q4FY22 (January-March).

As a percentage of nominal GDP, PFCE was 61.1 percent compared with 55.5 percent in Q1FY22 and 59.2 percent in Q4FY22.

Nominal