Orders of heavy duty trucks have collapsed
Almost everything everyone owns in America has spent at least some time in a truck. As such, the health of the trucking industry is a pretty reliable indicator of the health of the economy.
In July, NAFTA Class 8 truck (basically heavy duty trucks) orders collapsed ` 12,900 new orders were booked for trucks, short of the consensus of analysts, who were expecting 16,000-17,000.
And it's not just seasonality that played a role. Nigel Coe, an equity analyst covering multi-industry stocks for
Morgan Stanley, alerted clients in a recent note that "the large 23% drop to 12,900 was far greater than the 11% median decline observed for the June/July period since 1996, and that, to make matters worse, the disappointing July print "came on the back of a larger than normal seasonal step-down in June, when Class 8 orders fell 7% M/M to 16,690 ` worse than the typical 3% M/M decline."
Read the full article
here.