Aftermarket retail sales indicator slips

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Updated May 15, 2019

CMVC Aftermarket Parts IndexCommercial Motor Vehicle Consulting (CMVC) announced Monday its Parts Aftermarket Leading Retail Sales Indicator (PLI) decreased 0.2 percent in January from December, the third consecutive month in which the indicator index has fallen.

Though the PLI remains at relatively high levels, CMVC says the modest decrease in PLI over the past few months implies slower growth in parts aftermarket sales.  The company says the primary drag on PLI over the past few months has been lower Class 8 fleet capacity utilization, seasonally adjusted.

“PLI is signaling slowing growth in parts aftermarket sales in the coming month, but storm clouds may be developing, if Class 8 fleet capacity utilization continues to trend downward for an extended period of time,” says Chris Brady, president, CMVC. “At the moment, growth in the truck population is more than offsetting slower truck depreciation related to lower fleet capacity utilization, but if fleet capacity utilization decreases for an extended period of time then actions will be taken by fleets to bring capacity in balance with freight volumes resulting in lower parts aftermarket sales.

“How this plays out in the coming months relates to a number of factors, in particular the growth rate of fleet capacity expansion and the growth rate of freight volumes.”

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