Enrique Lores, CEO of HP Inc., told CNBC on Tuesday that he believes there are signs that businesses are being more cautious about their PC purchases as a result of financial uncertainties.

Lores’ remarks in an interview with “Mad Money” follow a well-documented slump in consumer PC demand this year, despite the fact that sales of more powerful machines favoured by businesses looked to be holding steady at times. However, fears about slowing economic development have grown in recent months, raising worries that enterprise PC sales would be the next thing to fall in a market that had expansion spurred by Covid.

“What we observed this quarter is a decrease in consumer demand, which really accelerated as the quarter went on. Following the PC and printer manufacturer’s release of mixed results for the three months ending July 31, Lores told CNBC’s Jim Cramer, “We also have started to notice some signals of slowing down on the business market.

According to Refinitiv, quarterly sales of $14.66 billion fell short of the $15.74 billion experts predicted, but earnings per share of $1.04 met expectations thanks to margins that were better than expected. Tuesday saw a reduction in HP Inc.’s full-year earnings projection for its next fiscal 2022, which ends in October.

The commercial division of HP Inc. is nevertheless hampered by stories of employment restrictions and slowdowns, according to Lores, even if the “overall situation we feel is temporary.”

Lores noted that “more and more organisations are being cautious about how to manage budgets and really be careful about how many new people they hire,” and added, “We really think this is motivated by the macroeconomic circumstances that we are facing.”