ECONOMIC WATCH: Trucking benefiting from K-shaped recovery
COLUMBUS, Ind. – It’s a K-shaped economic recovery, according to ACT Research, but fortunately trucking is on the upper half of the K. “What this means is that a large swath of the economy has enjoyed something approximating a V-shaped recovery, even as major economic segments remain mired on an L-shaped trajectory,” ACT Research said in a release.
“Fortunately for freight economy, the pattern has been more V-shaped,” said Kenny Vieth, ACT Research’s president and senior analyst. “Demand for goods, both durable and non-durable, began to surge in May, as consumers stopped spending on experiences. From January to July, consumer spending on services fell 9.7%, while during the same period durable goods spending was up 10.5% and nondurable expenditures rose 4.2%.”
The strong freight recovery is translating to renewed interest in Class 8 trucks, with orders remaining healthy in August, up nearly 74% year-over-year, ACT reports.
Classes 5-7 truck orders were up 10% from July and down just 2% year-over-year.