Orders rose to their highest level in nine-quarters, according to Kenny Vieth with ACT Research.
“While orders remained at strong levels through the second quarter, May and June were modestly lower than the preceding month,” Vieth said. “Preliminary indications suggest that orders slipped again in July.”
Despite the slippage, orders have remained stronger than the rate at which trailers are being built. With production remaining well below orders through the second quarter, by the end of June order backlogs had risen to their highest level since early 2001. Growing order backlogs suggest that trailer production will continue to increase through the third quarter.
“Unless the economy retrenches, production growth is expected to continue though the fourth quarter and into next year.” Vieth said. “Despite improving production, factory shipments are expected to remain below year ago levels until the fourth quarter.”