This paper firstly gives a brief introduction on the development of China's urban households' income and economic growth. It analyzes several hot topics such as the impact of economic growth on the increase of households' income, the structural change of urban households' income, the income gap between the urban and rural households and the structural change of households' consumption induced by economic structural change. In the second part of the paper, the authors examine the trend of urban households' consumption and conclude several main reasons on the change of consumption rate. Finally, it concludes some policy suggestion on increasing urban households' income and consumption level. The authors point out that the most important issue is to optimize the income distribution pattern and establish balanced new pattern. <<