P&G posts surprise sales drop on slowing demand for personal care products

Tide maker Procter & Gamble (PG.N) reported a surprise drop in quarterly sales for the second time in a row, as price-conscious consumers in its major markets, the United States and China, switched to cheaper brands.

An uncertain US economy – P&G’s growth engine – has pushed customers mainly from the lower-income group to rivals who are offering discounts, and cheaper private-label brands.

P&G’s organic sales in North America grew 4 per cent in the first quarter...