FTR releases preliminary Class 8 net orders for November at 19,300 units, up 41% month-over-month (m/m), right in line with the FTR forecast. The respectable November order activity met expectations as the market is back to tracking normal cycles. Class 8 backlogs are expected to increase for the first time in 10 months. Including November, Class 8 order activity for the past 12 months annualizes to 191,000 units.
Don Ake, Vice President of Commercial Vehicles at FTR, comments, “Class 8 orders came in right as expected in November. It is good news that the market has stabilized and is following seasonal trends. Backlogs should increase in November and December as production dips, however this order level should allow production to bounce back some in Q1.
“The downturn in the Class 8 market was in response to weak manufacturing and lackluster freight growth in 2016. It appears business inventories have finally dropped and manufacturing is regaining strength. This trend is important for the Class 8 market to regain footing early in 2017.”