Class 5-7 Demand Remains Solid: ACT

Solid orders continued for medium-duty Class 5-7 in November, with preliminary net orders of 18,700, according to ACT.

“More prevalent direct exposure to facets of the economy other than those that generate freight has allowed demand for medium-duty vehicles to remain more stable,” said Steve Tam, ACT’s VP-Commercial Vehicle Sector.  “Despite falling 15% month over month, the year-over-year and year-to-date comparisons reveal growth in the mid-single-digit percentage point range.”

In November, 35,300 Class 5-8 vehicle orders were booked, down 26% from October and down 37% from November 2014’s outsized rate of order placements.

At 16,600 units in November, NA Class 8 net orders were nearly 60% lower than a year ago, the same pattern as last month, when Class 8 orders were off 37% year-over-year. “Unfortunately, little of the decline can be accounted for by seasonality,” Tam said. “November was the weakest Class 8 net order month since August 2010 on a seasonally adjusted basis and September 2012 on an actual basis. A glut of inventory in the broader economy has led to slowing freight and lower freight rates. This, in turn, has caused truckers to hit the pause button on truck orders.”