Podcast Summary: Marketplace Morning Report

Episode: Can China spur consumer spending?
Date: November 24, 2025
Host: David Brancaccio

Overview

This episode explores recent trends in consumer spending both in the United States and China, highlighting economic outlooks, the challenges faced by consumers, and the broader implications for global markets. Special attention is given to China's efforts to stimulate consumer demand amid economic slowdown, high youth unemployment, and persistent cultural habits of saving over spending.

Key Discussion Points and Insights

U.S. Economic Outlook (00:59 – 02:44)

• Business Economist Sentiment:
  • A survey from the National Association for Business Economics shows a slight increase in optimism among U.S. corporate economists.
  • Expectations for both growth and inflation have ticked up, suggesting fewer Federal Reserve interest rate cuts in the upcoming year.
• Holiday Shopping Trends:
  • Consumers are shopping more at discount retailers like TJ Maxx and Walmart, signaling increased price sensitivity.
  • Julia Coronado (01:37):

    “Consumers are stretched, prices have risen and they're looking for deals. … They're going to try to stretch that dollar this holiday season.”

• Deloitte Survey Insights (02:50 – 03:42):
  • Shoppers plan to spend 4% less than last year between Black Friday and Cyber Monday, mainly due to high prices and financial concerns.
  • Low-income consumers plan to cut spending by 12%; even the wealthiest shoppers (> $200k/year) expect to spend 18% less.
  • 38% say they'll only buy items “at least half off.”
  • Almost two-thirds will use credit cards or “buy now, pay later” financing.

China’s Struggle to Boost Consumer Spending (05:03 – 08:15)

• Economic Backdrop (05:03 – 05:30):
  • China’s economy has slowed this year, facing falling exports, a trade war with the U.S., and record-high youth unemployment.
  • Unlike the U.S., where consumer spending drives growth, China’s domestic consumption remains a smaller percentage of economic output.
• Youth Unemployment and Work Climate (05:30 – 06:16):
  • Many young Chinese are unemployed or underemployed. Available jobs are more often low-paying or outside their field of study.
  • Young worker, Beijing (06:02):

    “Some of my friends are unemployed, still living at home and looking for a job. … The economy is a bit off right now. I hope it gets better so we can all have a better life.”

• Cultural Savings Mentality (06:16 – 06:47):
  • Unlike in the U.S., Chinese consumers tend to save more, especially in uncertain times.
  • Helena Loefgren, Swedish Institute of International Affairs (06:47):

    “People save more than they consume and you need the consumption to make up a bigger share of the economy than it's doing today in China.”

• Tech Sector Transition & Labor Market (06:56 – 07:29):
  • China’s push toward high-tech and automation is creating fewer job opportunities, intensifying youth unemployment.
  • George Magnus, Oxford University (07:14):

    “That's not being helped really by the push to become a champion in robotics and in AI, because tech isn't really that labor intensive anyway.”

• Changing Consumer Habits, Deflation, and Government Policy (07:29 – 08:15):
  • Social media vloggers promote bargains and minimalist consumption among youths, who remain wary amid economic uncertainty.
  • Persistent price cutting fuels deflation, dragging down growth further.
  • Government may need to boost the social safety net or raise graduate wages to inspire optimism and spending.

Quick Global Update: Weight Loss Drugs and Pharma Stocks (08:15 – 08:46)

• Results from a study found Ozempic, a GLP1 drug, did not slow Alzheimer’s progression, causing a sharp dip (down 9%) in stock for Novo Nordisk.

Notable Quotes & Memorable Moments

• David Brancaccio (02:38):

  "A little bit more optimism, I suppose, is better than a little less optimism."

• Julia Coronado on consumer behavior (02:23):

  "It tells us that consumers are stretched, prices have risen and they're looking for deals."

• Chinese Youth Interviewee (06:02):

  "Some of my friends are unemployed, still living at home and looking for a job. … I hope it gets better so we can all have a better life."

• Helena Loefgren (06:47):

  “People save more than they consume and you need the consumption to make up a bigger share of the economy than it's doing today in China.”

• George Magnus (07:14):

  “That’s not being helped really by the push to become a champion in robotics and in AI, because tech isn’t really that labor intensive anyway.”

Timestamps for Important Segments

• 00:59 – 02:44: U.S. economic sentiment and holiday shopping preview
• 02:50 – 03:42: Detailed findings from the Deloitte holiday spending survey
• 05:03 – 08:15: China’s economic slowdown, youth unemployment, and cultural factors affecting consumption
• 08:15 – 08:46: New findings on weight loss drugs and their market impact

Tone and Language

The episode maintains a conversational, accessible, and slightly wry tone—particularly in David Brancaccio's transitions (“What are you giving Gross domestic product for the holidays?”) and in the candid interview snippets from economists and international correspondents.

Conclusion

This quick but informative episode offers an at-a-glance update on cautious consumer behavior in the U.S. and China, with expert insights into the underlying economic, social, and cultural trends. The challenges for both economies are stark: Americans want bargains and use credit liberally, while Chinese households continue to hold back on spending amid economic uncertainty and changing job prospects for the young. Both trajectories have major implications for global markets as the year draws to a close.