FTR reports preliminary North American Class 8 net orders rebounded in July to 20,000 units, up 28% from June, and double the orders that we had in July of 2019. Class 8 net orders for the last 12 months now total 168,000 units.
The strengthening truck market that occurred in June and July resulted in further improvement for new truck orders. Demand for new trucks was better than expected, but uncertainty around increasing coronavirus case counts and Congressional action on unemployment benefits may dampen the market as we move into fall.
Jonathan Starks, chief intelligence officer, commented, “As we hit the height of summer demand, the freight markets showed strength and resilience and that led to additional orders for trucks. The order activity for both June and July was more robust than expected and is good news for the equipment producers. However, despite the increasing orders, FTR still expects the Class 8 market to maintain a slow, steady recovery.”
“The freight markets sustained a traumatic decline of volumes at the start of the pandemic and consumer demand, on an absolute basis, will remain weaker as we deal with high levels of unemployment and a Congress that has been unable to foster a bi-partisan solution to stimulate demand. The OEMs received a needed boost from July orders, activity that will help keep the industry moving in an upward direction.”
Final data for July will be available from FTR later in the month as part of its North American Commercial Truck & Trailer Outlook service.
