According to the latest State of the Industry report released by ACT Research, Class 8 net orders in July fell 20% month-over-month, but contracted nearly 58% on a year-over-year basis, to a total of 10,358 units. ACT said medium duty net orders totaled 15,364 units, rising 1% month-over-month and year-over-year.

“Outside of the bright spot that continues to be demand for vehicles in Mexico, July’s batch of Class 8 market indicators provided no sign of near-term relief. The U.S. and Canadian tractor (especially sleeper) markets remain over-capacitized,” said Kenny Vieth, president and senior analyst. “Historically, July is the worst order month of the year. To improve interpretation, ACT seasonally adjusts its data. July’s 10,400 Class 8 net orders (124k SAAR) seasonally adjusts to 12,000 units (142k SAAR). Actual or adjusted, we have to go back to Q1/10 to find comparably weak volumes.”

Vieth said that steady-as-she-goes sentiment remains in place for medium-duty vehicle markets. He explained, “After an eight-month run in which Classes 5-7 orders averaged 21,300 [units per month], driven in part by new product introductions, orders have cooled. In July, total Classes 5-7 net orders rose 1% [month-over-month] and [year-over-year] to 15,364 units, with seasonal adjustment boosting the total to 18,200 units.”