Final March Class 8 net orders totaled 17,410 units, which is down 8.4% year-over-year, but total Class 5-7 orders surged 23% year-over-year to 23,359 units, according to the latest report from ACT Research.
The seasonally adjusted totals were 17,200 and 23,400, respectively, ACT added.
“March orders may finally indicate a slowdown in capacity additions, a requisite for the freight market to turn, after a year of growth that defied typical fundamentals,” Kenny Vieth, ACT president and senior analyst, said in a news release. “Though we note, Q2 and Q3 are the weakest points in the calendar for orders, so the call is not prescient.
“U.S. tractor orders totaled 10,400 units, down 1.3% y/y. In the vocational market, total N.A. Class 8 truck orders fell 2.0% y/y to 5,300 units.
“Between strong production and softening U.S. tractor sales the past six months, Class 8 inventories have risen substantively. Since last September, Class 8 inventories have risen nearly 15,000 units, hitting another four-year high in March. Class 8 build totaled 29,854 units in March, down 5.0% y/y, but due to Easter, had three less production days this year. Total Class 8 retail sales were 25,942 units, down 13% y/y.”
Regarding Classes 5-7, Vieth concluded: “Inventories remained highly elevated in March, as medium-duty bodybuilder labor and supply-chain challenges persist. Inventory totaled 89,360 units on a nominal basis, up 22% y/y.
“Retail sales remained healthy at 20,320 units.”