U.S. Construction Machinery New Orders through April 2020 were down 12.2% compared to the previous year. Demand will likely be limited into late 2020 due in part to reduced demand for U.S. Private Nonresidential Construction. U.S. Farm Machinery and Equipment Supplies were down 3.2% in April and steep decline is anticipated due to global macroeconomic decline negatively impacting machinery exports.
Europe Agricultural and Forestry Machinery Production through April was down 10.4%. Further decline is anticipated due to shifting consumer demand, labor disruptions and COVID-19 shutdowns negatively impacting the industry and reducing demand for new machinery.
U.S. Defense Capital Goods New Orders remains one of the few bright spots in the heavy equipment market. A rise of 3.0% over a year ago was recorded in April. While new orders in April were lower than March 2020, rising U.S. Defense Capital Goods Shipments indicate the decline in April will be a brief one.
For the on-road segments, U.S. Heavy Duty Truck Production continued to be down with a 24.9% decline reported in May. Continued economic uncertainty is causing fleets to delay ordering. Annual Production is expected to be down the remainder of the year. Annual China Large Diesel Bus Production was up slightly in April, but is expected to fall below the year-ago level. While production is coming on line again in the country, declines in the global industrial sector may reduce the need for new and replacement buses.
NOTE: All data for charts supplied by ITR Economics