As Australia gears up for an election this weekend, ominous signs of a slowing economy have filtered through to truck sales, a usually reliable economic bell-weather indicating underlying business confidence.
Australia’s recent slowing rate of truck sales growth is now a decline, as August 2013 sales fell compared to August 2012. Three out of four key commercial segments contributed to the fall.
The total Australian truck market for August was 2419 units registered, 8.5% lower than August 2012, reducing the total year‐to‐date gain over 2012 to just 3.2%.
Heavy trucks experienced a considerable fall of 12.8% during August. A total of 904 units were sold but this year’s segment growth has slowed from an early-year, confidence boosting double‐digit growth, to a more pedestrian year‐to‐date gain of 3.1%.
Industry advocate, the Truck Industry Council says it remains hopeful that after the election truck operators will regain confidence, and place the orders during September that the council believes have been postponed over the past few months, as business awaits the election outcome.
Tony McMullan, CEO of Truck Industry Council says: “August truck sales reflect the condition of slow capital equipment and business investment leading up to a federal election and economic uncertainty.”
Medium duty truck sales also suffered consecutive months of decline compared with the same months in 2012, with the most recent monthly total of 525 units posting a significant 15.2% drop compared with August 2012.
Overall, sales this year have proved to be the strongest in the post-GFC era, but August 2013 sales have been eclipsed by the same month in six of the previous ten years.
The August 2013 cumulative total of 20,098 units was the best since 2008’s record, but still 17.2% below August 2008’s year-to-date figure of 24,283.
