COLUMBUS, Ind. -- US used truck sales grew 8% in June over May, but lagged June 2011 and the first six months of 2011, while pricing appears to be slowing a little more rapidly than was previously expected, according to the latest report from ACT Research.
“While June’s sales appear positive at face value, concerns are now surfacing, especially relative to the amount of inventory on hand and the prices at which those units were acquired,” reported Steve Tam, vice-president, commercial vehicle sector, with ACT.
Concerning pricing, he added, “The slowdown is not necessarily permanent, nor irreversible, but is a reflection of current economic conditions. Flat demand for more units started the ball rolling. Higher prices have led to changes in financing, which are making transactions more expensive and preventing some potential buyers from making purchases. The solution lies in increased economic activity, which is expected, but at a measured pace.”
Meanwhile, recent softness in trailer industry orders continued in June, a further reflection of the recent soft patch in commercial vehicle demand, according to ACT officials. Despite the decline from May, order volume was up almost 4% year-over-year.
“Total production grew 3% for the month, but jumped 8% on a per-day basis, as June schedules had one less workday than May,” said Frank Maly, director, CV transportation, with ACT Research.
“Soft orders combined with increased production to shrink industry backlogs by 7% during June. The industry ended the month with backlogs of just over 104k units. The industry typically works off backlog throughout the late spring and summer months, so that decline was anticipated,” he added.