According to US research company ACT, China’s growth has been slowing recently, with first quarter real GDP rising at a 7.7 per cent year-over-year pace, down from 7.9 per cent in the fourth quarter of 2012.
In a report published in conjunction with China’s State Information Center (SIC), ACT's Frank Maly said: “Domestic sales of Chinese heavy duty trucks fell 18 per cent year-over-year.”
Experts now expect the trailer segment to be affected as well – especially because Maly is expecting truck sales to lose pace in Q3 against the backdrop of a softening economy. Overall, China’s economic growth is expected to be slower over the coming five years when compared with the past five years.
ACT's announcement comes on the back of China's ruling Communist Party saying it would not be providing fresh cash to boost the markets anymore. Recent days have seen the central bank turn off the flow of cheap money in an effort to force the country's banks to be more disciplined in their lending.
As a result, shares in China plunged 5 per cent amid warnings from the government there that it would not “wet nurse” the economy back to health, sending the index into a downward spiral.