Commercial Motor Vehicle Consulting’s (CMVC) Parts Aftermarket Sales Leading Indicator (PLI) decreased 0.1 percent in July, following seven consecutive monthly increases.
The upward trend in PLI has been decelerating since April, signaling moderating growth in parts aftermarket sales in the coming months. The decrease in July was modest and PLI remains at a high level, so July reflects moderating growth in parts aftermarket sales in the coming months instead of decreasing sales.
“The upward trend in cyclical factors that have driven strong growth in parts aftermarket sales have peaked, so are no longer supporting accelerating growth in sales, but rather moderating growth in parts aftermarket sales,” says CMVC President Chris Brady.
“While there is much talk about a recession, at the moment there are no signs of a recession in the fleet business environment, as cyclical factors remain at high levels. Cyclical factors combined with vehicle demographic factors will spur moderate growth in parts aftermarket sales in the coming months. The risks of a recession are in the medium term, as a result, PLI remains at a high level signaling moderate growth in parts aftermarket sales,” Brady says.
