Soft economy weakens Class 8 expectations
Despite positive underlying demand factors and freight growth, current events have impacted commercial vehicle demand. The data comes from commercial industry data provider ACT Research Co. (ACT).
The August issue of the ACT North American Commercial Vehicle OUTLOOK shows that Class 8 backlogs declined slightly during June, ending a nine-month run of consecutive improvement. That decline resulted from an easing in orders during the month. While economic weakness has not resulted in increased cancellation activity, build rates declined slightly as well during June.
“The U.S. economy is growing at a very slow pace, and is more susceptible to shocks, both internal and external,” states Sam Kahan, ACT’s chief economist. “We’ve reduced our estimate of future economic growth, which results in a reduction of our Class 8 projections for this year as well as 2012.”
Kahan says that even though long-term demand factors continue to be solid, the economic pressures in the short and intermediate terms cannot be overlooked. For more information on ACT visit http://www.actresearch.net.