Courtesy of Bloomberg Economics Brief: Chart of the day: From today's "Bloomberg Economics Brief," Bloomberg economist Rich Yamarone releases a chart showing that FedEx's total U.S. package shipments may indicate a bleak outlook for economic activity. Is a recession in the cards?
How Federal Express Package Shipments Relate to the Economy
Federal Express Cuts 2013 Profit Forecast on Economy, Fuel
FedEx Corp., an economic bellwether as operator of the world's largest cargo airline, reduced its profit outlook for the second time this year, citing a slower economy. The shipper said its "2012 U.S. GDP growth forecast is 2.2 percent and 1.9 percent for calendar year 2013, which is 0.5 points lower than our fourth-quarter earnings forecast." "Exports around the world have contracted and the policy choices in Europe, the U.S. and China are having an effect on global trade," Fred Smith, chief executive officer of the company, said. The company's ground-delivery business in the U.S., which offers a less expensive alternative to air delivery, posted a sales increase of 7.9 percent to $2.46 billion.
- Richard Yamarone, Bloomberg Economist
About Bloomberg Brief
Bloomberg Brief combines market data and analytics with industry-specific content and commentary written by industry experts, researchers and leading economists. The newsletters draw upon information from the Bloomberg Professional service, the leading platform used globally by more than 310,000 business and financial professionals. Subscribers to the Bloomberg Professional service can sign up for a newsletter as part of a monthly subscription fee; please contact Nick Ferris at email@example.com. For more information or to subscribe, visit www.bloomberg.com/brief