Prominent companies producing food and household essentials are expressing concern about the future of U.S. consumer spending. PepsiCo’s CFO, Jamie Caulfield, stated that the company feels less optimistic about consumer behavior compared to three months ago. Major consumer conglomerates, including PepsiCo, Kimberly-Clark, and Procter & Gamble, have lowered their financial forecasts for the year, anticipating reduced sales and profits. This shift comes after President Trump imposed significant tariffs on Chinese goods and global imports. Kimberly-Clark estimates that the trade war will increase costs by $300 million, while Procter & Gamble may raise prices to offset expenses. Chipotle has noticed a decrease in customer visits due to economic concerns. Many companies rely on China for parts of their supply chain, and reciprocal tariffs on U.S. goods further complicate matters. Colgate-Palmolive’s CEO noted that uncertainty leads to cautious consumer behavior, impacting various industries such as travel. A University of Michigan survey revealed a decline in consumer sentiment regarding the U.S. economy. Inflation remains moderate, with consumer prices rising just 2.4% from the previous year.
— new from NPR
