Business | The profit cycle

Have profits peaked at American businesses?

The forces which fuelled a decades-long rise in corporate earnings are petering out—or going into reverse

Oct 9th 2022

Fedex nearly failed to get its wheels off the ground. Months after it first began delivering packages overnight in 1973, the first oil shock buffeted the global economy and the young logistics firm looked destined to crumble. Now, as the Organisation of the Petroleum Exporting Countries once again sent shock waves through the already wobbly world economy with an announcement on October 5th of a sharp cut in output, fuel prices are just one of the firm’s worries. Weak package volumes and persistently high costs caused FedEx to withdraw next year’s profit guidance in September, knocking more than a fifth, or $11bn, off its market value.

This article appeared in the Business section of the print edition under the headline “Peak profit?”