December Class 8 net orders were “healthy,” bringing total year-end ordering activity to a strong 159,000 units for September through December, according to ACT Research’s latest State of the Industry: NA Classes 5-8 report.
Orders for Classes 5-7 declined 3% year-over-year and 21% month-over-month to 17,464 units, with seasonal adjustment trimming orders to 16,100.
“For now, business activity in the truck industry rolls on, also seemingly unphased by higher interest rates, as pent-up demand remains for now,” said Eric Crawford, ACT’s vice president and senior analyst. “We expect this dynamic to shift in [the second half of 2023] as the Fed continues its aggressive push to subdue inflation. Although there have been recent signs of inflation slowing, we do not expect the Fed to begin cutting rates in 2023.”
Regarding retail sales, he said: “Class 8 retail sales in December rose 19% year-over-year to an all-time record 34,415 units. The strong finish to the year led to a total of 309,615 units sold in 2022.
“Classes 5-7 retail sales [seasonally adjusted] rose 3.6% year-over-year to 19,000 units. Full-year retail sales were 229,821.”
ACT’s State of the Industry: NA Classes 5-8 report provides a monthly look at the current production, sales, and general state of the on-road heavy and medium duty commercial vehicle markets in North America. It differentiates market indicators by Class 5, Classes 6-7 chassis and Class 8 trucks and tractors, detailing measures such as backlog, build, inventory, new orders, cancellations, net orders, and retail sales.