Marketplace All-in-One Can China spur consumer spending?
Nov 24, 2025
Explore the contrasting dynamics of consumer spending between the U.S. and China. Young people in China are facing high unemployment and stagnant wages, which dampens their spending power. Meanwhile, expectations for modest inflation and growth are emerging. Insights from a Deloitte survey reveal American shoppers are planning to spend less this Black Friday, opting for credit options instead. The podcast also examines the implications of high savings and the tech sector's limited ability to create jobs.
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Economists Trim Fed Cut Expectations
- U.S. corporate economists expect slightly stronger growth but also slightly higher inflation next year.
- That mix implies fewer Federal Reserve rate cuts than previously anticipated.
Shoppers Hunt Deals, Use More Credit
- Holiday shoppers plan to spend less and hunt for deep discounts, reflecting stretched budgets.
- Many plan to use credit cards or buy-now-pay-later to meet holiday purchases.
Consumption Lags Behind Exports
- China's economy relies less on consumer spending compared with exports and investment.
- Young people face high unemployment and weak wages, which suppresses domestic consumption.