The risk of an economy-wide recession was a growing concern through Q3 2019 has largely faded, with healthy consumer fundamentals expected to provide sufficient momentum to get through the slow patch in industrial activity,” said Kenny Vieth, ACT Research’s president and senior analyst.
“That said, the manufacturing recession continues, and the supply-demand imbalance between trucks and freight currently weighing on carrier profitability is likely to extend deep into 2020.”
In its latest State of the Industry: NA Classes 5-8 Report, ACT Research predicted the U.S. economy will grow by 1.8% in 2020.
Speaking about the Class 8 market, Vieth said, “For those keeping score, 2019 was the second best year in history for Class 8 production, trailing only the EPA07 pre-buy driven volumes of 2006. While a downturn is expected this year, the silver living is that the expected production decline in 2020 will pale compared to the 42% drop recorded in 2007.”