According to preliminary data from FTR, Class 8 truck orders decreased again in March, falling by 19,000 units, indicating the fifth decrease in the previous six months.
Orders, despite declining 18% from February and 11% annually, still exceeded expectations, according to the industry forecaster, and are at healthy levels. Slower activity was anticipated and will probably persist through the summer, according to FTR, which states that nearly all 2023 construction slots are already taken.
Backlogs probably decreased during the month because construction activity has been hovering around 27,000 units for the past few months. "However, given order activity levels, it is challenging to determine if there is a fundamental weakening in the Class 8 equipment market given backlogs sitting at such high levels," said Eric Starks, head of the board of FTR.
"At replacement demand levels, the inbound order rate for March was 228,000 annualized, exactly in the sweet spot. The results were good overall and won't have much of an effect on output levels over the next two quarters. This is a positive indication that demand has not decreased and that fleets still have access to money given the economic uncertainty.
19,200 Class 8 orders and 18,600 units for Classes 5-7 were revealed by ACT Research. According to Eric Crawford, vice president and senior analyst, this was in line with ACT's forecast of 15,000–20,000 Class 8 sales per month into the third quarter.
Seasonally adjusted Class 8 orders "fell back within the 15,000-20,000 range, and have averaged 19,500 units year to date," according to Crawford, after coming in stronger than anticipated last month.
He continued, "Medium-duty demand decreased by double digits year over year for the second consecutive month."
