Business activity in the truck industry rolls on, unphased by higher interest rates; however, ACT expects this dynamic to shift in 2023 as the Fed continues its aggressive push to subdue inflation.
“Most notable this month was the continued strength in Class 8 order activity,” Eric Crawford, ACT Research vice president and senior analyst, said. “Also, heavy-duty production levels were ahead of OEM build plans, while medium duty (MD) fell short. Otherwise, activity was largely in line with expectations, with cancellation volumes and rates remaining low.”
He said that over the course of Q4 2021, there were nearly 52,000 Class 8 cancellations — orders that were booked for but not delivered in 2021 — rebooked into 2022 build slots.
Crawford added that while cancellations are running at historically low rates today, unless the OEMs change the process of dealing with paperwork non cancellation cancellations, cancellations will elevate sharply in December.
“Though this week’s 50-basis point increase is a welcome sign, cracks in the economy are becoming more evident: the impact of higher rates has begun to slow activity in the housing sector, and large layoffs have started in the tech sector,” Crawford said.
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.