FedEx shares fell 5.3% to $232.29 in after-hours trade, while rival United Parcel Service stock shed 1.1%. Those companies are seen as barometers for the global economy since their business touches so many types of businesses.
Both companies have been slashing costs as less lucrative e-commerce delivery demand from companies like Temu and Shein outperforms that of higher-margin shipments between businesses.
The industrial sector includes firms that produce products used to make other goods. It drives significant cargo volume and more profitable deliveries for FedEx and UPS. Many executives in the U.S. transportation industry had been banking on the industrial economy returning to growth this year.
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