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Analysts at J.D. Power Valuation Services claim that Class 8 conditions were generally stabilized in July, signifying June’s recovery was not solely based on pent-up demand.
“Pricing is solidifying, customers are buying more used trucks and new truck orders and deliveries are heading back in the right direction,” said Chris Visser, commercial truck senior analyst at Valuation Services.
“When a massive black swan event blows up everyone’s forecasting models, the human gut becomes the main driver of decisions. Fleets waited to see what would happen to freight volumes once the stockpiling effect shook out, and they seem to be OK with what they are seeing.”
Major findings:
- Class 8 auction results were solid for another month
- >Late-model sleepers returned to their highest average pricing in 12 months
- Class 8 retail pricing was stable
- >Sales volume was the highest in almost 2 years
- Medium duty segments were flat-to-downward
- >Sales volume was down in lighter-GVW segments that small businesses use.
“When a massive black swan event blows up everyone’s forecasting models, the human gut becomes the main driver of decisions. Fleets waited to see what would happen to freight volumes once the stockpiling effect shook out, and they seem to be OK with what they are seeing,” Visser claimed.
Results of Phase 1 of the Small Business Pulse Survey – 215,000 small businesses across the country responded to Phase 1 of the U.S. Census Bureau’s Small Business Pulse Survey.
Which sectors fared better in Phase 1? Utilities and construction fared reasonably well over the nine weeks of the survey and respondents reported already being almost back to normal and had the largest percentage reporting no change in revenue.
Which sectors fared worse in Phase 1? Education & services; health care & social assistance; arts, entertainment, & recreation; and accommodation and food services saw significant disruptions based on initial responses and this persisted over the 9 weeks of the survey.
Phase 1 responses varied by geography: in Salt Lake City, 20% of businesses reported little or no impact & 17% reported no change in operations year-over-year. However, in New York City, 7% of businesses reported little or no impact and 7% also reported no change in operations year-over-year.