There was a significant and expected increase in Class 8 truck order activity during the month of November, according to preliminary numbers from FTR.
Net orders are projected to hit 19,300 units for the month, representing a 41% increase in order activity compared to October. Backlogs are also expected to increase for the first time in 10 months.
“Class 8 orders came in right as expected in November. It is good news that the market has stabilized and is following seasonal trends,” said Don Ake, vice president of commercial vehicles at FTR. “Backlogs should increase in November and December as production dips, however, this order level should allow production to bounce back some in Q1.”
Class 8 order activity for the past 12 months annualizes to 191,000 units, according to FTR.
“The downturn in the Class 8 market was in response to weak manufacturing and lackluster freight growth in 2016,” said Ake. “It appears business inventories have finally dropped and manufacturing is regaining strength. This trend is important for the Class 8 market to regain footing early in 2017.”