P&G, KDP, Nestlé, Colgate-Palmolive & Unilever Respond to Dive in Consumer Sentiment

Consumer sentiment has reached its lowest level since Juluy 2022, according to the University of Michigan’s Consumer Sentiment Index, which recorded a reading of 52.2 in mid-April. 

This is largely due to economic factors such as tariff volatility. The socio-political landscape, including changes in immigration policy, is also affecting sentiment and spending behavior.

The drop slowed mid-April following President Trump’s announcement of potential negotiations during a 90-day pause on tariff increases.

“There appears to be some headway being made in the tariff negotiations, with a deal at hand with Japan and comments that the U.S. is talking with China (though China has publicly denied this),” John Harmon, managing director of technology research for Coresight Research, told CGT. 

Also read: NielsenIQ finds that Americans are putting off major purchases due to Tariffs

This could reassure consumers to spend again rather than socking away their cash, he added.

Many consumer goods companies are feeling the pressure, preparing their organizations to not only adjust supply chain practices due to the tariff environment, but also shift their pricing and marketing strategies to keep wary consumers engaged. 

Here’s how CPGs are responding, according to recent earnings conversations.