North American Truck Orders Stage July Surprise

BLOOMINGTON and COLUMBUS, IN – Two newly issued preliminary reports show North America increases in both heavy-duty and medium-duty truck orders.

The freight transportation forecasting firm FTR said Class 8 truck net orders rose for the first time this year to 23,920 units, up 21% month-over month, but down 19% versus last July. 

The hike was much higher than expectations as a few big fleets placed their large 2016 requirement orders a few months early. Orders were down year-over-year due to a similar, but heftier, spike last July, according to FTR.

This follows a comparable rise in commercial trailer orders in June. The market remains robust with Class 8 orders totaling 356,000 units over the last 12 months.

“This is a strong order number for July. Even though most of the market was subdued, the fact that some big fleets have the confidence to place huge orders right now is a great sign for the Class 8 market going forward,” said Don Ake, FTR vice president of commercial vehicles. “Fleets are positive because freight markets continue to grow.  We may see more of this early ordering trend the next two months before the peak order season starts in October.”

A separate report from commercial vehicle industry data provider ACT Research shows Class 8 North America orders in July totaled 24,100 units, 19% above June orders.

“Despite the better than expected result, Class 8 orders fell 20% from July 2014. Seasonally adjusted, July’s net order volume rises to 28,900 units, the best order month on a seasonally adjusted basis since February,” said Kenny Vieth, ACT president and senior analyst.

For the month of July, 39,400 Classes 5-8 vehicle orders were booked, up 10% from June and down 14% compared to July 2014, according to ACT Research.

“ACT Research continues to believe the recent order decline is a reflection of meaningfully larger backlogs and tough comps rather than any structural change in demand,” said Vieth.

He said North American Classes 5-7 vehicle orders remained in the doldrums for a second consecutive month in July, slipping 1% month over month and 4% year over year to 15,300 units.

“Some of this decline is attributable to seasonality,” said Vieth. “When seasonally adjusted, July’s medium duty orders rise to 17,600 units, up 4% from June.”


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