Third straight increase in class 8 truck orders: FTR

NASHVILLE, Ind. — Preliminary for October Class 8 truck orders for all major North American OEMs showed a 22 percent increase over the previous month, according to FTR Associates.

October orders hit 18,386 units — the third consecutive month showing month over month increases.

Net order activity, which includes U.S., Canada, Mexico and exports, for the six-month period including October annualizes to 171,662 units.

"Increased order activity in October was in line with expectations and is consistent with FTR’s current forecast of only a modest increase in demand for equipment in 2011," says Eric Starks, president of FTR. "Typically October is a seasonally strong month for orders with November the strongest order month of the year."

Therefore, adds Starks, if November orders do not surpass October by several thousand units, "that would suggest that many fleets are holding back on buying equipment."

"Based on comments we’ve heard from fleets about disappointing October freight demand, there is some downside exposure to November orders with fleets not yet comfortable enough to invest in new power units."

Starks estimates that November orders will hover around 20,000 units before falling off in December.

"Anything exceeding 25,000 units in November would certainly be a win for the industry."