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Consumption picks up in FY25 on rural demand

Business Standard

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May 31, 2025

The rebound PFCE growth (% Y-o-Y)

- SHIVA RAJORA

Growth in the private final consumption expenditure (PFCE), which is taken as a proxy for consumption demand in the economy, outpaced gross domestic product (GDP) growth in 2024-25 (FY25), even as the consumption demand slowed to a five-quarter low in the fourth quarter (Q4) of the financial year.

According to the latest data released by the National Statistics Office (NSO) on Friday, PFCE grew at 7.2 per cent in FY25, up from 5.6 per cent in FY24. As a share of nominal GDP, it stood at 61.4 per cent, up from 60.2 per cent in FY24.

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