This paper analyzes overall income and consumption in urban and rural China in 2013, and forecasts the trend of residents. consumption in the future. In 2013, income level continues to increase steadily for both urban and rural residents. Meanwhile, residents' living standard is further improved; the consumption level has increased, where consumption ideology and consumption model have risen to a new height. However, admittedly, the macroeconomic situation contributes to the less optimistic expectation for domestic consumption, and high housing prices and soaring expenditure on basic necessities affect the immediate consumption and weaken the momentum of domestic consumption. The marginal effect of measures and policies to increase domestic demand has reached its limits, and an unsafe environment continues to be an obstacle to boosting domestic consumption. For 2014, the GDP growth rate will be higher than 7% , and the total retail sales of consumer goods will increase by about 13%. <<