Consumers, worried about the economy and being laid off, are pulling back on their spending, and that anxiety is translating into lower sales and profits for some of the country’s largest consumer-oriented companies.

On Thursday, PepsiCo cut its full-year guidance outlook, citing a reduction in consumer spending as well as the impact the company is feeling from increased global tariffs. PepsiCo’s earnings call pointed to anxious consumers as to why sales had slowed, echoing comments by Chipotle and Procter & Gamble.

At Chipotle, same-store sales fell for the first time since 2020 in the most recent quarter, the chain reported this week. Uncertainty about the path forward for the U.S. economy started to affect spending in February, the company said, a trend that continued into April.

“It was all around this idea of saving money, economic uncertainty — they’re eating at home more frequently than they’re eating out,” Scott Boatwright, the burrito chain’s chief executive, said when asked about consumer behavior. The underlying trend, he added, is “really tied to the consumer sitting on the sideline.”

Signs that economic concerns are starting to affect consumer spending are appearing in the airline industry, too. American Airlines pulled its full-year guidance on Thursday, mirroring a move last month from Delta Air Lines. Robert Isom, the chief executive of American Airlines, told CNBC on Thursday that domestic leisure travel “fell off considerably” starting in February.

The most recent survey from the Conference Board showed consumer confidence tumbling in March to its lowest level since January 2021. Americans are increasingly anxious about their jobs and finances, the business group reported.

https://www.nytimes.com/2025/04/24/business/pepsico-earnings-economy-tariffs.html