By Ananya Mariam Rajesh and Jessica DiNapoli

(Reuters) -Tide maker Procter & Gamble reported a surprise drop in quarterly sales for the second time in a row, as consumers in the United States, its biggest market, bought fewer name brand products and Chinese shoppers shunned them.

P&G's CFO Andre Schulten sought to reassure investors, saying on Friday there were "no indications that the consumer is not with us." Shares of the Dawn dish wash maker closed flat on Friday.

Analysts and investors said economic uncertainty in the U.S. market - which accounts for nearly half of P&G's total sales - has prompted some lower-income consumers to turn to rivals offering discounts, and cheaper private-label brands.

Growth in P&G's first-quarter organic sales in North America slowed to 4% from 7% seen a year earlier, as its reliance on price hikes faltered, while volumes rose.

The company's baby, feminine and family care segment, housing iconic diaper brand Pampers, saw a 2% fall in sales during the quarter while its beauty segment, which includes troubled Japanese skincare brand SK-II, saw a 5% drop.

"Consumers aren't feeling good out there after the bout of inflation we've had over the recent years, so we need an improvement in sentiment...for a company like this to do better," said Don Nesbitt, senior portfolio manager at F/m Investments, which has a stake in P&G.

The company maintained its forecast for the upcoming year.

"Pricing initiatives by the company didn’t fully translate into the quarterly sales growth the street expected," said Louise Dudley, portfolio manager at P&G investor Federated Hermes. "P&G is seen as the bellwether for consumer habits and the company delivered roughly in line with expectations, with results and outlook suggesting little has changed."

Another barometer of consumer sentiment, packaged food maker Nestle on Thursday noted a weak demand environment would continue, flagging pressure from weaker economies such as Latin America, and cut its annual sales forecast.

CHINA TROUBLES

A prolonged property crisis and rising youth unemployment have resulted in a grim demand environment in China, which has hurt P&G's sales volumes in the country. P&G's organic sales in China fell 15%, as anti-Japanese sentiment there weighs on the company's high-end SK-II skin care brand.

China makes up for the bulk of P&G's international revenue, which accounts for more than half of the company's total sales.

"China, as we had expected, continues to be softer from a consumption standpoint ... the market continues to be weak and will be weak...for a number of quarters to come," CFO Schulten said.