ACT Research announced in its Commercial Vehicle Dealer Digest released Monday that freight-related metrics are continuing the moderation that began in August.
The report, which provides monthly analysis on transportation trends, equipment markets, and the economy, also explains why the market forecasting and analysis firm believes that this does not suggest that the market is poised for a near-term rollover.
“This does suggest that the forward momentum has slowed. As well, we are hitting tougher year-over-year comparisons,” says Kenny Vieth, ACT’s president and senior analyst. “Given that, performance compression has been expected, but it is important to reiterate that the roll-off of momentum in freight data is occurring at high levels and against tough comparisons. This is still a very robust environment.”
He adds, “We are on the cusp of significant capacity additions coming online as today’s orders are converted into tomorrow’s capacity. Hence, the rate of freight growth is a critical factor. The upside of the cycle is marked by demand outstripping supply, while the downside is inevitably led by supply meeting and then exceeding demand.”