The Class 8 truck market is on the cusp of a significant correction, according to ACT Research.
The report also suggests the U.S. economy will decelerate from the 2018 tax cut-boosted growth of 2.9% to an average of 2.4% this year and then slightly below 2% in 2020.
“There is a gap between the perception that things remain A-Ok in the heavy truck business on one hand and the rapid erosion of transportation fundamentals on the other. This is why ACT has been warning subscribers for months about the possibility of a slowdown into the end of 2019,” said Kenny Vieth, ACT’s president and senior analyst. “Regarding other commercial vehicle segments, medium-duty build strengthened sequentially, and sales became less of a drag, even as orders have softened. Fortunately for the MD market, demand is more closely aligned with consumers, and less with manufacturing.”