Are business conditions normalizing in the parts sector?
Commercial Motor Vehicle Consulting (CMVC) reported Tuesday that while its Parts Aftermarket Sales Leading Indicator (PLI) fell for the seventh consecutive month in April, the rate of decrease shrunk to 0.2%, well below the 0.7% average from the prior six months.
In releasing the data, CMVC President Chris Brady says the slowdown in PLI decline "may be signaling the deceleration in the growth rate of parts aftermarket sales is stabilizing in the near future, however, it is too early to draw conclusions after only one month data point. The risks to the parts aftermarket sales outlook remains on the downside, as risks of a recession in the medium term remain evaluated.
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CMVC also notes that macro fleet business conditions continued to soften in April, but because PLI remains at a relatively high level, which is signaling growth in parts aftermarket sales in the coming months, but at slowing rates.
"The rate at which the truck population is depreciating is within a normal range, so an expanding truck population is supporting higher parts aftermarket sales, but the rate at which the truck population is depreciating is decelerating, causing the growth rates of parts aftermarket sales to slow," Brady says.
