This article first appeared on GuruFocus.

Procter & Gamble (NYSE:PG) is warning that U.S. sales are sliding fast as economic pressure builds and government aid dries up, making life harder for everyday shoppers.

Speaking at a Morgan Stanley conference, finance chief Andre Schulten said sales dropped sharply in October, both in volume and value, and November hasn't looked much better either. He described U.S. consumers as increasingly uneasy and cautious, calling the environment probably the most volatile we've seen in a long time. The slowdown is expected to hit hardest in the fiscal second quarter.

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Despite the softness, P&G isn't changing its full-year forecast. The company still expects FY26 earnings to land between $6.83 and $7.09 a share, roughly flat to up 4% from last year, which suggests management believes the weakness may be temporary.

Schulten also touched on restructuring, saying P&G isn't just trying to cut costs, but to free up money for growth. AI will play a big role, allowing smaller teams to handle work that once needed large groups. Investors reacted swiftly, knocking the stock down 3% and dragging peers Unilever and Colgate lower.