In the release of its Commercial Vehicle Dealer Digest, ACT Research noted that the overall economic picture remains largely unchanged, with growth moderating in 2019 from last year’s vigorous pace. The trade war with China, which had been put on the back burner earlier this year, was put back on high heat at the beginning of this month. The report provides monthly analysis on transportation trends, equipment markets, and the economy.
“While we can hope for a better outcome than overly-heated rhetoric suggests, should the tariffs occur, freight markets, which are already stagnating, will be impacted. The moral of the story is that if goods cost more, fewer goods can be purchased,” said Steve Tam, ACT’s Vice President. He continued, “Aside from trade, however, the overall economic picture remains largely unchanged, with growth moderating in 2019, after growing nearly 3% in 2018.”
Regarding freight, Tam added, “While there is a very low probability, and no expectation, of an economy-wide recession this year, freight-related data points have been sufficiently bad, both in breadth and duration, that a freight recession is not out of the question, and higher tariffs could be what tips the scales.”
ACT Research is recognized as the leading publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasting services for the North American and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies. More information can be found at www.actresearch.net.
ACT’s 61st seminar is scheduled for August 12-14, 2019, and will feature a dealer panel, as well as discussions on near-term demand of North American commercial vehicle markets and the impacts of tomorrow’s technical challenges. A global forecasting workshop is also being planned in conjunction with this semi-annual event. Click here for seminar information.