Shipping giant UPS lowered its economic outlook for the rest of the year as the slowing global economy is expected to reduce demand for the company's logistics services, executives said Tuesday.
In a conference call with investors, United Parcel Service Inc.'s chief executive Scott Davis said that the slowdown in China's economy and the European debt crisis led to the company's lowered economic projections.
"Economies around the world are showing signs of weakening, and our customers are increasingly nervous," Davis said.
Davis also said that the U.S. economy has shown recent signs of weakening as well: the past three months have shown slowed job gains, retail spending is down and the manufacturing sector has also softened.
"Given these trends, we think second-half economic forecasts for the U.S. are too high," Davis said.
Davis said the company predicts U.S. gross domestic product growth to be about 1% -- much lower than the 2% general estimate by the Federal Reserve and other economists.