FTR released preliminary Class 8 net orders for June at 13,000 units, 8 percent below May and -34 percent year over year. June 2016 order activity was the lowest monthly total since 2012 and the worst June since 2009. FTR expects Class 8 orders to remain tepid through the summer months. All manufacturers were equally impacted by slow order intake. The annualized rate of orders continues to drop, at 162,000 for the past three months, and 224,000 over the past 12 months.
“The Class 8 market is stuck in a holding pattern at the bottom end of this cycle,” said Don Ake, vice president of commercial vehicles at FTR. “Fleets are cautious as freight demand has cooled off this year. There are enough trucks to handle freight right now with carriers in a wait-and-see mode before adding trucks or replacing older units.
“This is what summer looks like in a market down-cycle, so we can expect this level of activity for a couple more months. We do anticipate higher orders later this year. However, the volume of orders will be determined by the strength of the economy and freight activity at that time.”
Final data for June will be available from FTR later in the month as part of its North American Commercial Truck & Trailer Outlook service.