According to preliminary data from ACT Research, 31,400 new Classes 5-8 vehicle orders were booked in May. Class 8 garnered 14,300 orders and 17,100 orders were placed for Classes 5-7.

“Three consecutive months of decidedly lower net orders for heavy duty commercial vehicles appear more closely aligned with current activity in the manufacturing and energy sectors of the broader economy,” said Steve Tam, ACT’s vice president of the Commercial Vehicle Sector. “While metrics in these segments are improving, they can best be described as not being as bad as they were previously.

Framed by the ongoing overcapacity narrative (too many trucks chasing too little freight) and resultant weak freight rate environment, along with continued softness in late-model used tractor values, May’s Class 8 net orders fell 31% against a moderately tough May 2015 comparison to 14,300 units. Positively, May’s orders, true to season expectations, bested April, coming in 4% higher.”

Orders for medium-duty vehicles slowed to their lowest level since July 2014. Despite the decline, (14% month-over-month and 18% year-over-year), intake remained 4% higher on a year-to-date basis, at 17,100 units. May’s lower intake was anticipated and portends an expected lower absolute level of activity in the near term