High Backlogs, Tough Comps Lead to 5th Consecutive Decline of Net Orders for Classes 5-8

"The year-over-year decline marked the fifth consecutive negative reading for Classes 5-8 orders," said Kenny Vieth, ACT's president and senior analyst. "However, we continue to believe that much of the order decline is a reflection of larger backlogs and tough comps, rather than any substantive change in demand."

“Class 8 orders were 19,700 units, 20 percent below July orders and 22 percent below August 2014. Because August is typically the second-weakest order month of the year, seasonal adjustment raises the month’s volume to 22,600 units. North American Classes 5-7 vehicle orders rebounded in August to 17,500 units. This result was up 10 percent from July, but down 3 percent compared to last August. Historically, August is an above average order month for medium-duty vehicles, so seasonal adjustment actually reduces August’s medium-duty order volume to 17,200 units,” said Vieth.

Source: ACT Research