Reports released this week by FTR and ACT show a modest uptick in truck sales.
FTR reports that preliminary Class 8 net orders for March were slightly above expectations and much higher than a year ago for the third consecutive month.
According to FTR, the total units sold were 22,800. ACT put the number at 23,100, which indicates a two-percent increase over February.
FTR’s report says that March orders were basically flat from February and up 41 percent from the same time a year ago.
“Against easy comps, March Class 8 orders were up 42 percent compared to March 2016,” says Kenny Vieth, ACT’s president and senior analyst.
Orders are forecast to stay close to this level through May, similar in trend to 2013. Class 8 orders for the past six months now annualize to 243,000, consistent with expected future build rates.
“March orders are reflective of a more normal Class 8 market in a moderate, freight-driven upcycle. Replacement cycles are now getting back into a more traditional pattern,” says Don Ake, vice president of commercial vehicles at FTR.
“This reflects growing fleet confidence as they see freight growth returning after a difficult 2016. OEMs are ramping up production in response. There is renewed optimism in the industry.
“This is a reserved, contained market upswing. It means it is easier for the OEMs to increase builds gradually and prices don’t fluctuate as much. It provides some market stability. It is good for the industry, and a good sign for the economy in the second half of the year.”
According to ACT, preliminary Classes 5-8 data for March indicate industry net orders rose to a 16-month high, 47,300 units. That aggregate volume represents a 19 percent improvement compared to last March.
