How Chinese shoppers downgraded their ambition

The bitter truth is that consumer confidence has continued to weaken this year, instead of recovering from the covid-19 pandemic. Even Shanghai, China’s consumption capital, witnessed retail spending fall by 2.3% year on year in the first half of 2024. Much of this is linked to the moribund housing market, by far the biggest destination for household investment. Youth unemployment is high, too. And economy-watchers were let down in July, when a grand political meeting failed to produce a proper rescue plan. Although household consumption makes up just 39% of GDP, compared with 54% across the OECD, a club of mostly rich countries, that share is continuing to slide.