2004 truck outlook positive

The outlook for truck production in 2004 is positive, according to the National Truck Equipment Association's Fall Truck Equipment Outlook. Capital expenditures are the component of gross domestric product that is most important to the commercial truck and transportation equipment industry. And according to a quarterly survey by the National Association for Business Economics, capital expenditures could increase by 10% in 2004.Historically, growth in medium-duty truck production tends to occur at about twice the rate of growth in expenditures on capital equipment.Business truck production and NTEA members' shipments have been trending slowly upward since 2002, roughly on pace with the level established in 1997. Both of these series are likely to start trending upward at a much higher rate in the fourth quarter of 2003 and into 2004 as capital expenditures continue increasing.