FedEx reported a lower first-quarter profit on Thursday as demand in the package industry remained muted, especially for priority services.

The package-delivery giant said reduced demand for priority services and higher operating costs weighed on its results.

FedEx said a weaker industrial economy produced a “challenging” quarter that caused it to trim its outlook for later this year, a sign of possible cooling in the wider economy.

By Shivansh Tiwary, Lisa Baertlein (Reuters) -Shares of FedEx slumped over 15% on Friday, the worst in two years, after a dismal first-quarter profit drop due to anemic economic conditions and an ongoing customer shift toward slower,

Analysts see a potential spinoff of FedEx’s freight business as a possible boost, but the stock is dropping sharply

FedEx’s results were dragged down by weaker-than-expected demand, particularly in the U.S. domestic package market.

The shipping carrier is calling out a growing trend that speaks volumes about the current state of the industrial economy.