After last month’s anomalous order number, June’s activity offers a more reflective view of current market conditions, as published in the latest State of the Industry: NA Classes 5-8 report by ACT Research.
Final North American Class 8 net orders totaled 14,604 units in June (18,200 seasonally adjusted), down 13% year over year as we move through the weakest period of the year for orders.
“The Class 8 backlog fell 15,516 units m/m in June to 127,917 units. With two fewer production days, June’s build rate increased to an incredibly strong 1,609 units per day,” Kenny Vieth, president and senior analyst of ACT Research, said. “Given where we are on the calendar, stronger build than orders should continue to push the backlog lower in the coming months.”
“A plant fire in April that caused the red tagging of numerous units continues to require some reading between the lines when it comes to Class 8 inventories. On ACT’s calculated basis, the Class 8 inventory rose to an all-time high close to 92,500 units in June, versus the 85,400 units reported. Our calculated inventory surpasses August 2019 on the ‘we’ve got an inventory problem’ list,” Vieth said. “Class 8 retail sales were 24,267 units, or 22.8k seasonally adjusted, down 19% y/y. The decline was more than covered by tractors, which fell 26% y/y, even as vocational units held their own, rising 2.7% y/y. On that seasonally adjusted basis, June’s retail number was the weakest since February 2022, back when supply chains were constraining the market.”
