Summary of the China Consumer Pulse Survey (July 2025) Industry Overview - The survey focuses on the consumer sentiment and economic outlook in China, particularly in the context of the ongoing impacts of tariff shocks and a softening property market. Key Points Consumer Sentiment and Economic Outlook - Consumer appetite remains lackluster despite a modest recovery from tariff shocks in April, with a deepening deflation feedback loop affecting wage growth and consumption [2][3] - 48% of consumers expect China's economy to improve in the next six months, an increase of 6 percentage points quarter-over-quarter (QoQ), while 14% anticipate deterioration, down 7 percentage points [12][15] Household Financial Concerns - Concerns about job losses and salary cuts have risen, with 45% and 44% of consumers expressing these worries, respectively [2][44] - The expected income growth over the next 12 months is 5.8%, down from 6.2% pre-tariff levels, indicating ongoing pressures on household finances [2][37] Consumer Spending Intentions - The net score of consumers intending to increase spending improved to 11% from 7% in April, with 67% expecting flat spending [3][49] - Spending intentions for most categories remain stable, with a notable trading-down trend observed [3][53] Property Market Insights - Sentiment in the property market has weakened, with 44% of homeowners eager to sell within the next six months, a slight decrease from April [4][80] - The share of homeowners willing to accept losses has increased, with 56% indicating they would accept a loss of up to 10% [12][80] Travel and Leisure Spending - Travel intentions for domestic travel are flat, while overseas travel intentions have increased slightly but remain lower than the previous year [3][71] - The average shopping budget for travel has decreased compared to a year ago, reflecting ongoing financial pressures [74] Job Market Outlook - The number of consumers actively looking for new jobs has increased to 65%, with confidence in landing a new job stabilizing at 75% [26][29] - Concerns about a competitive job market and layoffs continue to affect consumer confidence in job security [33] Summary of Consumer Behavior - 82% of consumers reported making spending cuts in the past six months, with 56% intending to save the money saved from reduced spending [65][66] - The number of consumers with lifestyle upgrade intentions remains at 19%, indicating a cautious approach to spending [61] Additional Insights - The survey included responses from 2,060 consumers across tier 1-4 cities, providing a comprehensive view of consumer sentiment across different urban areas [5] - The findings suggest that while there are signs of stabilization in consumer confidence, significant challenges remain, particularly in the job market and property sector, which could impact future consumption patterns [2][3][4][15]