Companies are dropping their earnings forecasts as consumer confidence about the future reaches 12-year low

Shoppers in the Soho neighborhood of New York City (Credit: Yuki Iwamura—Bloomberg/Getty Images)

• While spending continued to increase in February, income grew even more, lifting the savings rate and indicating more caution among Americans. As growth slows down, some businesses are slashing their earnings forecasts amid consumer behavior concerns.

As confidence in the economic outlook fades, consumers are slowing their spending, and businesses are lowering their earnings forecasts.