NasTrac Quarterly Index Shows Decline in Trucking and Machine Tool Repossessions ...( The 44 percent drop in truck reposse...),Health

The 44 percent drop in truck repossessions shows this sector may have stabilized and much of the excess of equipment has been drained from the market, ending the hysteria of the past few quarters in a sector that has seen an extraordinary amount of activity in the past few years.

The decline in recent repossessions in the trucking sector is likely due in part to the limited production of new vehicles. FTR Associates, an industry analyst firm, is forecasting a 47 percent decline in new Class 8 truck production this year.

The NQI data also reflects a mixed bag of news in trucking activity. The August 2009 Freight Transportation Services Index (TSI), which measures the month-to-month changes in freight shipments in ton-miles, rose 0.7 percent in August from its July level, a second consecutive monthly increase, according to the U.S. Department of Transportation.

In fact, the Freight TSI has now avoided a decline for four consecutive months for the first time since 2002, after a stretch of nine of the previous 12 months in which the index declined. However, the Freight TSI marked its lowest figure for August since August 1997 with a 10.9 percent decline from August 2008, the largest month-to-month decline in August in the 20 years for which the TSI is calculated.

Other Repo Trends

Nassau's latest NQI compares the company's internal repossession and orderly liquidation activity in the first quarter of 2009 with the same period of 2008. In addition to reporting on truck volume, the latest NQI revealed the following trends:

Construction Repos Still On The Rise - the current 53 percent rise in construction activity shows the continued problems faced by the homebuilding industry.

The Commerce Department recently announced that construction of new homes rose slightly, by 0.5 percent in September, with an increase in single-family construction leading the way. But appli
'/>"/>