The middle class is the backbone and the stabilizer in a society, and it is also seen the main power for consuming consumer goods of service. On the panel data of per capita disposable income and per capita consumption expenditure on service by the Shanghai Statistical Yearbook (2000-2012), using Fixed-effects variable-coefficient model and the time series, this paper studies the relationship between disposable income and service consumption expenditure of the middle class. The results show that there is a positive relationship between disposable income and services consumption. This relationship does not change with the change of consumers’ class. However, the middle class’s marginal propensity on service consumption is higher than higher income class and lower income class. The conclusions of the study have important implications to the government and firms on making decisions.