Companies cut off their profits, as consumer confidence in the future reaches the lowest level in 12 years

• While spending continued to increase in FebruaryThe income grew more, the savings rate raised and indicates more caution among Americans. With slowing growth, some companies reduce their profit expectations amid consumer behavior fears.

With confidence in the economic view, consumers slow down their spending, and companies reduce their profits.

Personal income jumped by 0.8 % last month, while spending increased by 0.4 %, which contributed to increasing the savings rate to 4.6 %. This is the highest since June 2024, and shoppers turn more cautious.

“The spending data in February confirm a slowdown in consumer activity in the first quarter of 2025,” Bill Adams, chief economist at Komerica, said in a note.

He added that weak spending in January may indicate “one -time withdrawals” from La Fires and harsh weather conditions, “but anemia recovery in February indicates a more stable traction.”

At the same time, consumer confidence drowns, although feelings do not translate into actual spending.

The conference forecast index has decreased in the latest consumer confidence survey to its lowest level in 12 years. The index decreased to 65.2, which is “much lower than the 80 threshold that usually indicates stagnation forward.”

In addition, consumer morale scanning at the University of Michigan this week decreased by 11 %.

“The decline in this month reflects a clear consensus in all demographic and political affiliations,” said the survey director, Joan Hsu, said. “Republicans have joined independents and Democrats in expressing the deterioration of expectations since February due to their personal money, working conditions, unemployment, and inflation.”

With consumers passing through the economic opposite winds, companies across industries feel heat.

Some people drop profit expectations while others continue to monitor definitions, inflation and consumer behavior affect their actions.

Fedex has reduced its expectations for the entire year for modified profits to 18-18.60 dollars per share from $ 19 to $ 20, which has already decreased from December expectations for $ 20 to 22.

During a quarter of an annual Profit callFinancial Director John Ditrich attributed the low view to “the ongoing challenges in the global industrial economy, inflationary pressure, and the uncertainty surrounding world trade policies.”

The Air Lines also dropped its profits for the first quarter, and is now expecting a profit between 30 cents and 50 cents per share, compared to the previous assessments between 70 cents and $ 1 in January.

According to Organizational deposit in MarchDelta said that her low instructions were due to the low confidence of consumers and companies caused by increased economic uncertainty and hitting local demand.

“Consumers in an estimated work do not like uncertainty,” said Ed Bastian, CEO of Delta. CNBC. “While we think this will be a period of time we are going through, it is also something that we need to understand and reach a quieter water.”

In addition, US Airlines reduced its growth forecast in March after the demand for the local entertainment sector and continued to repercussions of the plane crash over the Botomac River in January. The company expects that the revenues of the first quarter will fall compared to last year, a decrease from its previous expectations, an increase of 3 % to 5 %.

“Infinitive winds”

Elsewhere, other companies provide disappointing instructions. LululeMon sees low consumer morale “showing himself” in a slower traffic. The company offers the revenues of the first quarter of $ 2.34 billion-2.36 billion dollars, less than the expenses of the street of $ 2.39 billion.

The company conducted a survey with iPSos earlier this month regarding consumer morale, and found that “consumers spend less due to increased concerns about inflation and economy.”

“The opposite winds of tariff” can lead to the slowest sales in 2025. Analysts’ expectations for 11.31 billion dollars.

The giant Walmart retail company has made modified profit expectations throughout the entire year from $ 2.50 to $ 2.60 per share, which is less than the Wall Street 2.76 dollar offer per share.

The CEO Duj McMelon also warned of consumer confidence during February 27 He speaks At the Economic Club in Chicago. He pointed out that “budget pressure” agents reduce their spending and show “stressful behaviors.”

The American Eagle said that it was affected by the slowdown of spending and is estimated to be an economic success of between 10 million and 10 million dollars from 10 million dollars of definitions in China over its financial year.

CEO Jay Shottinstein said that “fear of the unknown” contributes to “the lowest demand.”

“Not only the customs tariff, not just inflation, we see the government cutting people,” he added. “They do not know how this will affect them.”

This story was originally shown on Fortune.com