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ACT Research: Key risk to vehicle market forecasts remains China trade war

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ACT Research: Key risk to vehicle market forecasts remains China trade war

COLUMBUS, Ind. — According to ACT Research’s latest release of the North American Commercial Vehicle OUTLOOK, the key risk to all vehicle market forecasts, as well as well as the U.S. economy broadly, remains the trade war with China.

With manufacturers and farmers struggling to compete on the tilted global playing field, the key driver of growth into the mid-term outlook is the U.S. consumer, who remains well positioned to keep the economy out of the ditch.

The N.A. CV OUTLOOK is a robust report that forecasts the future of the commercial vehicle industry, looking at the next one to five years, with the objective of giving OEMs, Tier 1 and Tier 2 suppliers, and the investment community the information they need for planning in a deeply cyclical industry.

The report provides a complete overview of North American CV markets, taking a deep dive into relevant economic, freight and regulatory demand drivers, pivoting on current market activity (from orders and backlogs to production and sales), before arriving at unit forecasts for different CV vehicle classes. Information included in this report covers medium and heavy-duty trucks/tractors, and trailers, the macroeconomies of the U.S., Canada, and Mexico, information on carrier profitability trends, freight and intermodal considerations, and regulatory environment impacts.

“While the subcomponents wiggled a bit, economic expectations remained unchanged this month, with growth expected to moderate in 2019 and again in 2020,” said Kenny Vieth, ACT’s president and senior analyst. “After growing 2.9% in 2018, the forecast calls for U.S. GDP growth to slow to 2.3% in 2019 and soften to below 2% growth in 2020.”

Vieth said if President Donald Trump doubles-down on the China trade war, which seems to be happening, a greater global downturn could ensue, with the worst outcomes spreading beyond the impact of tariffs and into a global currency war.

“Additional negative moves from this point would substantively increase the likelihood of a US recession in late 2020 or early 2021,” Vieth said. “That said, consumer fundamentals, job and wage growth and savings rates are all at healthy levels, supporting consumer confidence and spending for the time being.”

ACT Research is a leading publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasts for the North America and China markets.

 

 

 

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The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.
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