Chinese consumer spending stagnant due to declining prices, low confidence, stagnant income growth, and job contraction

From CNBC: 2025-06-15 19:17:00

China’s consumer spending remains stagnant with declining prices and low confidence due to stagnant income growth. The job market is contracting, with high youth unemployment. Most households prefer saving money over spending. Analysts suggest increasing pension payouts and public holidays to boost spending. Policy changes aim to support employment and welfare. Retail sales recovery is slow post-pandemic.

Chinese consumers are shifting towards lower-priced products and moving out of big cities. Tier 1 cities like Shanghai and Beijing are losing residents, while tier 3 and 4 cities see growth in daily necessities sales. Average selling prices are falling as consumers prefer cheaper products. Rural income remains significantly lower than urban areas.

Read more: Why aren’t Chinese consumers spending enough