Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Customers are looking at 80% or 70% of the Hangzhou supermarket, Zhejiang province, China, June 9, 2025.
Cfoto | Future Edition Gets the image
Beijing – Chinese consumer expenses soon show little features, given the uncertainty about future wealth, changes in the benefits and lack of social security network.
It was Four Direct Months Reduced Consumer PriceConsumer confidence is hovering near historical lows, and the real estate market is fighting to turn around. Analysts repeatedly indicate one main factor: stagnant income.
A single profit in China has halved its growth rate after the 2020 pandemic, which is now growing by an average of 5% per year, the report said in the report in the report.
Most jobs do not give much increase. Of the 16 sectors, only three – mining, utilities and information technologies – it is observed that wage growth exceeds the level of gross domestic product since 2020, he said.
Monthly Business Surveys on May were shown Reduction on the labor market By all, the factories focus on tariffs in the US. The unemployment rate among young people between the ages of 16 and 24 and not at school remained high in April by 15.8%. The official level without work in cities hesitated about 5%.
In the third quarter of 2024, a record high of 64% of Chinese households that they will save money rather than spend or invest, reports a quarterly poll of the People’s Bank of China.
While it moderated up to 61.4% in the fourth quarter, the last poll, published in March, reflected the trend of more than 60% of respondents who preferred to keep, which has been recorded since the end of 2023.
And for respondents who planned to increase costs, Education was the main categoryThen there are health and tourism, the poll in the fourth quarter of PBOC, published in March.
More than half of the respondents considered the labor market as difficult or difficult to say.
People in China have been culturally prone to savings, especially since limited insurance coverage means that people often have to carry most of the cost of treatment in hospital, higher education and retirement. Real estate recesses over the past few years have also weighing costs as the property is most of the domestic resources in China.
One way to make people more willingly spend – more than double pension payments, increasing the share of state assets paid by the Ministry of Finance, in the Luo Zhiheng note, the chief economist of the Yuekae securities.
He added that the increase in public holidays and the proposal of vouchers to consume services could also help.
In the past few weeks, the Chinese authorities have stepped up plans Further employment support and improve social well -being. But politicians avoid the mass materials that the US and Hong Kong gave residents stimulating the cost after the pandemic.
Going out of the pandema, analysts warned about it Retail sales in China will recover very slowly As the main uncertainty for consumers remained unresolved.
A decade before the pandemic, “Chinese consumers have been ready and could buy any innovations, even innovations that were not so innovations,” said Bruno Lanez, a senior partner of Bain & Company.
“They are more rational in today’s world. They know what they want,” he said on the Webinar on Thursday.
China is expected to report retail sales on May on Monday. Analysts surveyed by Reuters predict a slowdown up to 4.9% compared to last year, compared to 5.1%.
Switching from big cities
Another factor behind the negative CPI is that Chinese consumers resort to low cost products, or partially use excessive production of quality goods, or depart from large cities in a place where the cost of life is lower.
Last year, Shanghai lost 72,000 permanent residents, while Beijing saw 26,000 drops, WorldPanel and Bain & Company noted on Thursday’s report. Both cities are usually classified as “level 1” cities in China.
As a result, population changes, smaller cities, called “level 3” and “level 4”, felt a much greater increase in volume and cost of daily necessary, sold last year – helping to reduce the level of level 1, the message said. The study covered the packaged food, drinks, personal assistance and home aid.
It was found that while last year the total volume of such goods sold in China increased by 4.4%, average sales prices decreased by 3.4%as consumers preferred products and enterprises that increased.
The trend even affects the sale of flowers.
Flora International Auction Center in Yunnan, the largest flower market in Asia, said in May more demand from less wealthy cities in lower levels, leading to higher volumes, but lower average prices.
On Friday, the business said after the holiday seasons, Lee Schings, a flower seller near the mall. She said that the prices for the flowers decreased slightly, partly because more and more people were growing flowers. She expects the requirement to pick up the National Day at the beginning of October.
According to the meaning of the inconsistency, rural cash income is less than half than in urban cities, according to official data. Last year, one -time per capita income in urban areas amounted to 54 188 yuan ($ 7,553). It is much less than 64 474 dollars reported for the US As of December.
Weekly analysis and understanding of Asia’s largest economy in your mailbox
Sign up now
Sign up now
Stevens of the standard bank noted that the ratio of consumption to income in rural areas “increased significantly” and exceeded the pandemic, while urban households decreased. But he noted that households with a smaller level of income do not have the scale of wealth that make groups with a higher income level to comprehend the consumption in the near future.
20% make up half the total income and consumption in China, and 60% of total economy, he said. “Support for low -income groups, albeit well, is not enough without the reform of structural wages.”
In addition, the “common prosperity” in China “rhetoric” introduced institutional perestroika and changes in politics, which, although well saturated, added uncertainty, “said Stevens, noting that the changes” still fully found a new equilibrium “.
