Spending on bread, protein-rich items fell in 2017-18

Indian households spent lesser on breads, cereals and pulses, milk and milk products, tobacco, communication and recreational activity and personal effects in 2017-18 compared with the previous fiscal, data released by the statistics office showed. As per the National Accounts Statistics 2019, the private final consumption expenditure (PFCE) on bread, cereals and pulses was Rs 4.8 lakh crore in 2017-18, down from Rs 5 lakh crore in FY17. Protein-rich products like milk, cheese and eggs too saw a decline in expenditure. The spends on milk, cheese and eggs fell 12% to Rs 3.7 lakh crore while that on milk and its products declined 14.6%. The decline in private spends in FY18 has continued to 2019-20 as shown by the sharp deceleration in pace of PFCE growth to 3.1%, an 18 quarter low in the first quarter of FY20. Private consumption had grown 7.2% in the trailing quarter. A recent Yes Bank report said that a range of lead indicators had pointed towards a continued moderation in consumption, as seen in a contraction in passenger vehicle and two wheeler sales, underscoring the weakness in rural demand. Source: Economic Times