According to the Wells Fargo Equipment Finance Trucking Quarterly Q2 2012 report, truck orders have been weak so far this year reflecting the sluggish environment. Citing rising fuel costs, higher truck prices, election and policy uncertainty and the reduction in the bonus depreciation tax credit, trucking firms remain cautious as fewer rigs get purchased.

The report states, while replacement-driven demand is still expected to buoy sales growth in the second half of the year, trucking firms remain vigilant with respect to capacity expansion given the recent history of summer growth stalls over the past two years.

Wells Fargo Senior Economist Sam Bullard stated “that caution seems well placed given the soft economic performance witnessed in March and so far in April. While we continue to expect the U.S., and the global economy for that matter, to continue to expand, the outlook remains challenged and the pace of U.S. growth is likely to remain constrained at around 2.0% - 2.5%. As such, we expect the trucking industry to continue to grow slowly for the remainder of 2012.”

Read the full Wells Fargo Equipment Finance Trucking Quarterly Q2 2012 report.