Class 8 truck orders continued to weaken in March at 19,000 items, based on preliminary information from FTR, marking the fifth decline within the final six months.
Nonetheless, the trade forecaster stated orders nonetheless met expectations and are at wholesome ranges, regardless of sliding 18% from February and 11% 12 months over 12 months. FTR says almost all 2023 construct slots are full, so slower exercise was anticipated and can seemingly proceed via the summer season.
“With construct exercise over the past a number of months hovering close to 27,000 items, backlogs seemingly fell throughout the month. On condition that backlogs are sitting at such excessive ranges, nonetheless, it’s troublesome to establish if there’s a basic weakening within the Class 8 gear market given order exercise ranges,” stated Eric Starks, FTR’s chairman of the board.
“The incoming order fee for March was 228,000 annualized, proper within the candy spot at alternative demand ranges. Total, the numbers had been stable and can have little influence on manufacturing ranges over the following two quarters. Given the uncertainty within the economic system, it is a welcome signal that demand has not collapsed and that fleets nonetheless have entry to capital.”
ACT Analysis reported 19,200 Class 8 orders and Lessons 5-7 orders of 18,600 items. This matched ACT’s expectations of 15,000-20,000 Class 8 orders per thirty days into the third quarter, based on Eric Crawford, vice-president and senior analyst.
“After coming in stronger than anticipated final month, seasonally adjusted Class 8 orders fell again throughout the 15,000-20,000 vary, and have averaged 19,500 items 12 months up to now,” Crawford stated.
He added, “Medium-duty demand declined 12 months over 12 months by double digits for the second consecutive month.”