Companies are slashing their earnings forecasts as consumer confidence about the future reaches 12-year low

• While expenditures continued to grow in FebruaryRevenues increased more, raising the exchange rate of savings and showing more caution among Americans. Because growth is slowing down, some businesses cut their earnings forecasts in terms of consumer behavior.

As the trust of economic outcomes, consumers slow their expenses, and businesses reduce their earnings forecasts.

Last month, personal income jumped by 0.8%, while expenditures increased by 0.4%, contributing to 4.6% of savings speed. It is the highest since June 2024, and Signals make shopping more careful.

“February expenditure data confirms the slowdown in consumer activity in the first quarter of 2025.” Comickey Indicates that the post notes: “Bank chief economist Bild.

Greek weak expenditures can indicate “one-time traction” from la fires and tough weather conditions, “but the anticipation of February points to a more persistence,” he added.

At the same time, consumer confidence is crashed, although the mood does not turn into real expenses.

The expectations of the Council of Europe’s expectations in the last research of consumer confidence fell to a 12-year low. The figure was immersed to 65.2, which “is below the threshold of 80, which is usually signales a decline“

In addition, the University of Michigan Consumer Surveillance Study has been released by 11% this week.

“This month’s decline reflects clear agreement in all demographic and political affiliations,” said Joanne HSU research director. “The Republicans joined the Democrats on their personal finances, business conditions, unemployment and inflation for inflation since February.

Because consumers get tired of economic hats, companies in industry feel heat.

Some people throw earnings, while others remain on the clock, as tariffs, inflation and consumer behavior affect their business.

FedEx: He has reduced his whole year’s forecast for the adjusted profit – $ 18 to $ 18.60 per share, $ 19 to $ 20, which has already decreased by $ 20 for the December forecast.

During its quarter earnings callCFO John Dietrich attributed the lower prospects to “the continued challenges in the world industrial economy, inflationary pressures and uncertainty related to global trade policy.”

Delta Air Lines: He lowered his earnings for the first quarter, now expecting a profit between 30 cents and 50 cents per share compared to previous January assessments.

According to a Adjusting Presentation in MarchDelta said that her atmospheric guide is due to a lower consumer and corporate confidence, which has arisen by the increase in economic uncertainty.

“Consumers in the soldier business do not like uncertainty,” said Delta Main Bastian CNBC:A number of “And while we believe that it will be a period of time through which we pass through, it is one thing we need to understand and achieve calmer waters.”

In addition, US Airlines reduces its growth forecasts in March, after a weaker demand in its domestic leisure, in January due to a plane crash in January. The company expects the income of the first quarter to be resolved compared to one year, from its previous forecast, from 3% to 5% growth.

“Tariff Chapters”

Other than other companies, other companies provide disappointing guidance. Mul – Lulhemon sees a low consumer mood “manifest itself” in a slow leg traffic. The company plans $ 2.34 billion worth of $ 2.36 billion, less than $ 2.39 billion.

At the beginning of this month, the company conducted a research on the consumer mood at the beginning of this month and was found that “consumers spend less due to inflation and the economy.”

CFO MEGHAN Frank called the “tariff brains” to sell slowly in 2025. Expectations of analysts $ 11.31 billion.

Retail giant Walmart Proposed full adjusted earnings $ 2.50 to $ 2.60 in a short period of one share – Share Share Project $ 2.76.

Executive Director Doug McMillon also warned of consumer confidence in February 27 talk At the Chicago Economic Club. He noted that “with the pressure of” budget “reduced their expenses and showed” stressed behaviors. “

The American Eagle stated that it affected the slowdown of expenditures and appreciates $ 5 million from China’s tariffs for its fiscal year.

Jay Shotortin said that “fear of unknown” contributes to “less stable demand.”

“Not only tariffs, not only inflation, we see that the government is cutting people,” he added. “They don’t know how it will affect them.”

This story was originally shown Fortune.com