China Consumer Spending Rises Amid Low Confidence, Inflation

Consumer sentiment in 2025 shows a cautious but gradually improving outlook amid economic uncertainties. In China, despite low consumer confidence and ongoing stress in the property market, retail sales in key categories and international cultural influence are rising, though households maintain historically high savings rates reflecting ongoing caution. In the U.S., consumer sentiment is slowly recovering with robust spending in July following a weak June, but rising utility and food prices are putting pressure on household budgets, leading to constrained discretionary spending. Federal Reserve insights highlight that economic momentum has slowed due to uncertainty around government policies, but improvements in business and consumer sentiment alongside fiscal and trade developments suggest potential economic recovery largely hinging on consumer behavior. Meanwhile, U.S. consumers face higher prices due to new tariffs, with advice to buy planned items promptly, consider older or refurbished models, and prioritize reliable products to manage costs effectively. Overall, consumer behavior in both China and the U.S. is marked by cautious optimism tempered by inflationary pressures and policy uncertainties.