Story first appeared in the Traverse City Record-Eagle.
FedEx Corp. says consumers are putting off purchases of electronics and other gadgets from China, another example of the global economic slowdown that’s prompting fears of another recession
The slowdown prompted the world’s second- largest package delivery company to lower its earning expectations for the fiscal year that ends in May. But while anxiety over the economy created a rout in the stock markets, and its own shares, FedEx isn’t yet ready to predict another recession in the U.S.
They commented that while there’s been considerable speculation that the economy has or will soon enter a recession, this is not their view at present.
FedEx’s larger rival united Parcel Service Inc. said last week that it thinks another recession is unlikely, although it warned of a bumpy ride for the global economy
Investors weren’t so sanguine. They sent FedEx shares down as low as $64.55, a level not seen in more than two years. The stock closed down $5.92, or 8.2 percent, at $66.58. The share had already lost about a quarter of their value since FedEx last reported earning in June. UPS shares dropped 3.3 percent to close at $62.17.
