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				Confidence Gap Leads To Class 8 Truck Decline: ACT Research
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						Jun 22, 2012 02:52 PM
					
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					Last Updated: Jun 22, 2012 02:52 PM
				
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				<p>COLUMBUS, IN &mdash; A recent three-month dip in class-8 sales is due to non-confidence on behalf of truck purchasers.</p>
<p>At least that&rsquo;s what the latest data out of ACT Research shows. (ACT issued a State of The Industry Report on the class-5-through-8 truck market earlier this week.)</p>
<p>"Smaller truckers who have to borrow to buy are most likely driving older trucks with relatively low values,&rdquo; says Ken Vieth, ACT&rsquo;s President and Senior Analyst.</p>
<p>&ldquo;Those truckers need to borrow $90,000 to $100,000 to finance a new truck, but their confidence has been shaken,&rdquo; he adds.</p>
<p>Event in early 2012, including economic concerns, a 9.5-percent jump in fuel prices through Q1 and inconsistent freight have shaken up the borrowers&rsquo; confidence, leading to the three-month decline in the class-8 market, the report shows.</p>
<p>"If the pullback in orders was freight-related, we would have expected to see a run-up in cancellation activity, which has not been the case," Vieth says.</p>
<p>"This suggests to us that the problems with demand are not systemic."</p>
<p>Vieth said a continuation of freight growth, healthy profits for truckers and rising prices for used trucks are expected to support class-8 demand once the smoke clears.</p>
			
				
				
			
				
				
			
			
			
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