GDP data confirms demand slowdown; consumption expenditure at 17-qtr low

Consumption expenditure, reflecting demand, grew only 3.14% in Q1FY20

The gross domestic product (GDP) data released on Friday confirmed distress stories emanating from different sectors. The private final consumption expenditure (PFCE), which reflects demand in the economy, grew 3.14 per cent in the first quarter (Q1) of 2019-20 (FY20) — a 17-quarter low.
 
The PFCE grew by 7.2 per cent in the previous quarter (January to March or Q4 of 2018-19 or FY19). In the year-ago period, PFCE growth was 7.31 per cent.
 
Economists and analysts identified this as the most distressing signal.
 
“Collapse of private consumption demand growth from 10.6 per cent in Q4FY18 to