Class 8 Truck Orders Plunge To Lowest Level Since February 2010
by Tyler Durden
ZeroHedge.com
Aug 4, 2016
For those investors that have relentlessly defended equity valuations, shunning hard data in favor of the Fed narrative that lower borrowing costs should move discount rates ever closer to 0% and equity valuations therefore ever closer to infinity, might we suggest you turn your heads now because Class 8 truck orders just dropped a huge dose of economic reality that you might want to promptly ignore.
For everyone else, July Class 8 trucks orders were, in a word, abysmal. According to ACT research, Class 8 truck orders for July came in at 10,500 which is down 57% YoY and 19% sequentially compared to June. July marked the 17th consecutive month of YoY declines and the lowest reading since February 2010. Perhaps even more shocking is the fact that July orders were 77% lower than the peak shipping month recorded in October 2014.
According to comments made by Dan Ake, VP of Commercial Sales at research firm FTR, to the Wall Street Journal the industry was hit with “several significant order cancellations” which was described as “uncharacteristic” for this time of year. Dan added that the “high cancellations are likely the result of fleets placing large orders at the end of 2015, for delivery a year out.”
The Rest…HERE
