As a basic link connecting production and consumption, the circulation system is of great significance for building a strong domestic market and accelerating the construction of a new pattern of development. Based on the panel data of 274 cities in China from 2009 to 2019, this paper focuses on the major strategic deployment of “national circulation node city layout planning”, and uses the difference-in-differences model to explore the impact of circulation system construction on residents’ consumption and its potential mechanism. The study found that the circulation node city policy can significantly improve the consumption level of residents, mainly by improving the consumption ability of residents, optimizing the consumption environment of residents and stimulating the willingness of residents to consume.The consumption driving effect of this policy is more obvious in the eastern region, non-old industries, areas with conservative consumer culture and sound digital infrastructure, as well as high-level and comprehensive node cities. Further analysis shows that this policy can optimize the consumption structure of residents and promote the upgrading of consumption quality. In addition, the policy has a positive spatial spillover effect, and the effective radiation range is 250~300 km around. The research results provide theoretical support and decision-making basis for realizing the insistence on expanding domestic demand, strengthening the domestic circulation, and accelerating the construction of a new pattern of developmentas proposed by the fourth plenary session of the 20th Communist Party of China Central Committee.