China’s Consumers Are Surprising Economists. Meet the ‘Bifurcated Shopper.’

1. Chinese retail sales grew only 3.4% in August, indicating cautious spending. 2. Sales of durable goods surged, including appliances up 32.4% year over year. 3. Consumer confidence remains low, affecting discretionary spending on nonessentials. 4. Policymakers are focused on stimulating consumption amid economic challenges. 5. Investors should focus on durable goods makers and services likely to benefit.