Are Class 8 sales about to cool off?
That seems to be the indication, given results of a recent survey released by ACT Research. In its latest Transportation Digest report, the research firm said it found that the North American Class 8 truck market is on the cusp of a “significant” correction.
The report paints a comprehensive picture of trends impacting transportation and commercial vehicle markets. It suggests that the US economy will decelerate from the 2018 tax-cut-boosted vigorous growth of 2.9% to a real GDP forecast average of 2.4% this year-- and to slightly below 2% in 2020.
At the same time, ACT researchers found, the medium duty market continued to confound in May, with forward-looking indicators deteriorating and concurrent data suggesting moderate growth.
“There is a gap between the perception that things remain A-OK in the heavy truck business on one hand and the rapid erosion of transportation fundamentals on the other," said Kenny Vieth, ACT's pPresident and senior analyst. "This is why ACT has been warning subscribers for months about the possibility of a slowdown into the end of 2019.
“Regarding other commercial vehicle segments, medium-duty build strengthened sequentially, and sales became less of a drag, even as orders have softened," he added. "Fortunately, for the MD market, demand is more closely aligned with consumers, and less with manufacturing.”