North American medium-duty preliminary orders rebounded to 19,000 units in May, up 17% year-over-year, clearly signaling strong demand, according to ACT Research.
“This was the sixth time in the past nine months that Class 5-7 orders reached at least 19,000 units,” said Kenny Vieth, ACT’s President and Senior Analyst.
For the month of May, 39,000 Class 5-8 vehicle orders were booked, down 8% compared to May 2014.
“While the order comparisons are negative, looking only at orders does not provide sufficient context in regard to industry health,” said Vieth. “Looking back one month to April, Classes 5-8 backlogs were nearly 63,000 units or 37% above their year-ago levels. Hence, orders are softer because many of them have already been placed.”
Class 8 orders posted their lowest monthly net order volume since September 2013 at 20,000 units, a decline of 23% from May 2014.
“Rather than simply considering orders to be a harbinger of weakness, broader context is required in passing judgment,” said Vieth. “In addition to few build slots remaining open in 2015, this is the time of the year when Class 8 orders typically slow.”