This paper analyzes the overall income and consumption in urban and rural China in 2014，and forecasts the trend of residents’ income and consumption in the future. In 2014，income level continues to increase steadily across both urban and rural residents. Meanwhile，residents’ consumption demonstrates an upward trend，with the stabilization of the consumption structure. However，admittedly，there are many factors which have negative effect and become obstacles to boost domestic consumption. For example，the lack of long-term mechanism of income increment，the insufficiency of consumption，the gap between urban and rural residents in consumption level，the low percentage of rural consumption，and the downward trend of housing price with decreasing demand for related commodities，all pose negative effect on the income and consumption structure. For the next year，the economic growth rate will remain at about 7%，and the total retail sales of consumer goods will increase about 10.0%.