Fedex sales fell 10.1 percent to $21.9 billion in its fiscal fourth quarter ending 31 May, the company reported. Its share price dipped 1 percent on news of the shipper’s third consecutive quarterly decline.

The company also projected sales will be flat, or grow by just a few percent, in fiscal 2024, due to inflation, higher interest rates, and the world’s general economic slowdown.

Since the COVID War ended, consumers have shifted their spending from goods to services, CEO Raj Subramaniam noted in a call with analysts.

Fedex is focused on its plan to combine its ground and express shipping divisions into a seamless single operation, part of its effort to cut $4 billion in annual costs by 2026.

Combining the two divisions in Canada alone will save about $100 million a year, the company said.

Fedex also has raised prices to offset the loss of package volume.

TREND FORECAST: We note this decline since it reflects a very large segment of the economy. Thus, the more orders they deliver, the stronger the economy. The less orders delivered, the weaker the economy.