North American Class 8 truck orders in May declined to their lowest level since September 2013. FTR reported May net orders totaled 19,714 units, an 11% month-over-month decline and 23% lower than a year ago.
Orders fell in May for the third consecutive month and dipped below the 20,000 threshold for the first time since September 2013.
All major OEMs were affected by the drop in orders, according to the report, with some experiencing larger than expected declines.
Class 8 orders over the last six months have hit an annual rate of 352,000 units.
FTR expects Class 8 orders to fall back into more seasonal patterns for the balance of the year. It noted backlogs remain strong with no expectation, currently, of any reductions in build rates.
“The Class 8 market continues to stabilize, and the overall market remains healthy at this point. At the current rate, we expect orders to bottom out in July in the 16,000 unit range, which will be sufficient to maintain production levels this year. However, some individual OEMs may need orders to improve to maintain their build rates.”
Meanwhile, North American orders of medium-duty trucks rebounded in May to 19,000 units, up 17% year-over-year, clearly signaling strong demand, according to another truck market firm, ACT Research.
This was the sixth time in the past nine months that Classes 5-7 orders reached at least 19,000 units,” the company noted.