ACT Research: ACT Sees Yellow Lights Flashing for US Economy & NA CV Industry

Posted on 10. Jan, 2019 by in Economy, NA CV OUTLOOK, Press Releases

ACTSeminar_59According to ACT Research’s (ACT) latest release of the North American Commercial Vehicle OUTLOOK, yellow lights are flashing for the US economy, and by Rate Pressure Analysis - OUTLOOK 1901extension for the North American commercial vehicle industry.

“Over the course of Q4’18, the list of indicators flashing yellow became longer and brighter for the US economy,” said Kenny Vieth, ACT’s President and Senior Analyst. He elaborated, “While there is insufficient evidence to make a recession call, there is enough presently to suggest growing potential for sectoral recessions, à la 2015.”

 

Regarding the transportation industry, he noted, “After several months of deterioration, the spread between contract and spot rates has been sufficiently wide for a sufficiently long period that ACT’s rate pressure analysis is now calling for negative contract rates, if just, by Q2’19.” Despite some caution creeping into the outlook, the heavy commercial vehicle market continues to benefit from a still-broad spectrum of supply and demand-side triggers.

Regarding ACT’s medium duty forecasts, Vieth said, “Preliminary December orders were modestly below the current trend, with orders averaging 25,000 units per month in 2018, which continued to exert moderate upward pressure on forecasts.”

 

CLICK HERE For information about ACT’s NA Commercial Vehicle OUTLOOK.

Video ScreenshotACT’s 60th seminar is scheduled for March 25-27, 2019, and will feature a trucker/fleet panel, as well as discussions on near-term demand of commercial vehicles and the impacts of emerging technologies on change in the North American commercial vehicle industry.

CLICK HERE for information about the upcoming seminar.