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The media likes to say that earnings season officially starts when Alcoa (AA) reports, but I never thought that was very accurate. Things really get kicked off with FedEx (FDX), one of the most important economic bellwethers around. This week’s earnings give us a little glimpse into the state of the economy.

Here are some key takeaways:

  • Revenue growth has slowed to 2%, which is consistent with the macro trend we’re seeing.
  • Operating income was up 7% and margins expanded. Corporations are maintaining margins for the most part.
  • They’re assuming US GDP growth of 2.1% and global growth of 2.6%. That’s down from 2.3% & 2.7% expectations last time we heard from FedEx.
  • The global economic environment was described as “tepid global economic growth.”

Overall, it sounds like more muddle through to me.

Source: What FedEx's Earnings Teach About The State Of The Economy