Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by John Nelson, financial planner at NelsonCorp Wealth Management. Welcome back, John.
John Nelson:
Thanks for having me, Brandy.
Brandy Auterson-Hurst:
So John, you’ve brought along a chart today on heavy truck sales. What does that have to do with the broader economy?
John Nelson:
I do, yeah. It’s one of the more interesting, I’ll say indicators that we follow, and it’s a good gauge for seeing where the economy is. The number of goods that are moved across our country by the heavy trucks and equipment can be somewhat of a leading indicator and something we’ll look at. So the graphic I have with me here today, these are big ticket type purchases. So when demand is strong and business is going well, you see the investment made in these type of pieces of equipment. The chart I have shows, looking back, this is the sales for heavy trucks here in the U.S. In white shaded areas where the white line, we’re seeing declines. Those are areas of recessionary periods of time in the past and something we keep a close eye on. So what we’ve seen here in recent months is a decline in sales, more of a cautionary flag and something we’re watching in the broad-based economy.
Brandy Auterson-Hurst:
So the big question is, so is this pointing to a recession or just a slowdown?
John Nelson:
So I’d say slowdown for sure. Recession, too early to tell. This is something that will need to play out for some time before we’re into that territory. But it is an indicator that when coupled with other economic data, interest rates, the uncertainty with the tariff environment. When you put those things together, it certainly gives investors room for pause. So something we’re watching carefully, and something that can be useful for other investors as well.
Brandy Auterson-Hurst:
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Indices mentioned are unmanaged and cannot be invested into directly.
This video includes a paid appearance.