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CNN
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According to Home Depot, consumers are unhappy about the economic situation and are spending less money on renovating their homes.

The home improvement giant, a proxy for consumer spending and the housing market, cut its revenue expectations for the year, saying customers would spend less money on home improvement projects due to higher interest rates and concerns that the economy could worsen.

“During the quarter, higher interest rates and greater macroeconomic uncertainty put pressure on consumer demand overall, resulting in lower spending on home improvement projects,” Home Depot CEO Ted Decker said in a press release.

Home Depot expects sales at stores open at least 12 months to decline 3 to 4 percent this year compared to last year. That’s down from its previous estimate of about a 1 percent decline.

Consumer demand for home improvement products has been declining for about a year, and the company said that hasn’t changed much. Still, Decker remained optimistic, saying, “The underlying long-term fundamentals supporting demand for home improvement products are strong.”

Home Depot (HD) shares fell nearly 5% in premarket trading.

This is a developing story and will be updated.