NASHVILLE, Tenn. — Class 8 net orders for December 2008 were even softer than estimated, totaling 8,649 units, reports FTR Associates of Nashville, Tenn. in their current North American Commercial Truck and Trailers Outlook service.

This is the lowest level for orders since September 2006. Orders for the three-month period, October, November and December 2008, are running at an annualized rate of a meager 119,100 units.

Class 8 order backlogs fell to 52,703 units with a backlog to retail sales ratio of 3.9 months. This suggests further reductions in production, note FTR analysts.

Order weakness remained in all geographic areas, but a noticeable decline in non-U.S. orders (Canada, Mexico, and exports) suggests that there is significant downward pressure on the forecast for 2009, according to Eric Starks, president of FTR.

"In the last quarter of 2008, orders for non-U.S. markets came in at an annual rate of 19,080 compared to the current new factory shipments forecast of 40,231 units for Canada, Mexico and exports," Starks says. "This just adds to the already negative outlook for Class 8 production in 2009."

U.S. order activity, meanwhile, seems to have stabilized (albeit at low levels) in the last four months of the year, with average order activity of 8,031 units (compared to 8,548 units in December). Backlogs fell further to 52,703 units, its lowest level since early 2003.