FTR reported that Class 8 preliminary net orders in July totaled 12,400 units, down 6% month-over-month (m/m) and 7% year-over-year (y/y). Class 8 orders for the past 12 months have now totaled 272,900 units.

July’s orders are somewhat below seasonal expectations with the market on a YTD basis now performing slightly below replacement demand levels with an average of 19,400 net orders per month. The decline is unsurprising given the strong order performance in the first five months of the year and the typically weak seasonal order period. After averaging nearly 16,000 units from April to June, orders have slowed to just under 15,000 units in the most recent three months. Build slot fulfillment for Class 8 trucks continues to decline as a result. Orders are now lower on a y/y basis for the second consecutive month, but due to the strong performance earlier in the year, net orders for 2024 YTD remain up 18% y/y.

Dan Moyer, senior analyst, commercial vehicles, commented, “OEMs experienced a somewhat mixed market this month with vocational markets mildly underperforming conventional, but the overall picture was steady. Despite stagnant freight markets, fleets continue to invest in new equipment, albeit at a slowing pace. Year-to-date order levels are just marginally below historical averages and seasonal expectations, and the market fundamentals remain relatively consistent based on these preliminary orders. We expect to see further reductions in backlogs once the final Class 8 market indicators are released later this month as well as continued growth in an already-record level of inventory. The pressure on OEMs to reduce build rates continues to grow.”