Procter & Gamble (PG), the maker of Tide, Dawn, Bounty and other leading household brands, warned Friday that consumers were beginning to pull back on their spending as inflation concerns mount.
P&G posted 7% sales growth during its most recent quarter ending June 30, its strongest growth in years. The company was able to push through higher prices on consumers. But its sales volumes declined 1% last quarter, a sign consumers were dialing back.
The company forecast sales growth of between 3% and 5% for its upcoming fiscal year, down from 7% during its latest fiscal year.
On a call with analysts Friday, P&G leaders said that while consumers are still buying household necessities, they are beginning to alter their purchasing behavior.
For example, consumers are not stocking up their pantries as much as they were early in the pandemic, and they’re buying more private-label brands, particularly in paper goods.
As shoppers are “more exposed…
