A sales warning from one of the world’s biggest consumer goods companies is undermining hopes for a significantly stronger global economy in 2020.
Unilever, which owns brands including Dove and Ben & Jerry’s, said Tuesday that it won’t meet its sales growth target for 2019, and warned that weakness will continue into next year. The company’s products are sold in 190 countries.
Unilever (UL) blamed the weaker forecasts on an economic slowdown in South Asia, one of its largest markets, and difficult business conditions in West Africa and North America. Unilever shares lost more than 6% in London.
“The slowdown is particularly coming in rural India, which for the first time in a while is growing at a slower rate than urban India,” CEO Alan Jope told analysts. The South Asian market also includes Pakistan, Bangladesh, Sri Lanka and Nepal.
The pace of economic growth has halved in India since reaching 9% just three years ago. Slowdowns in manufacturing and agriculture have resulted in job cuts and weak consumer demand, forcing companies like Unilever to cut prices in the country.
It’s far from the only global trouble spot. Manufacturing has slowed sharply this year in Europe, with output especially weak in the production heartland of Germany. China’s economy is growing at the slowest pace in three decades.