Written by R.W. Baird analyst David J. Manthey, CFA with Quinn Fredrickson, CFA 3/7/22
The Fastener Distributor Index (FDI) survey for February, 2022 rebounded over January’s dip, coming in at 56.0 versus the previous reading of 52.7, seasonally adjusted.
Offsetting the sentiment of current activity, the Forward Looking Indicator (FLI) declined markedly to 55.6 after a strong 62.8 reading last month. Despite the weakening pace, this the 21th consecutive month of positive (+50.0) outlook.
The February Fastener Distributor Index (FDI) recovered nicely m/m, rebounding to 56.0, following January’s seasonal-adjustment driven down-tick. The recovery was broadly consistent with recovery seen in the ISM PMI and other macroeconomic data points as pandemic-related disruption eased.
Respondent commentary suggests a continued supply and labor constrained market. The ForwardLooking Indicator (FLI) retreated m/m to 55.6 as incoming order growth slowed for some respondents. Overall, we believe fastener market conditions were strong in February as demand remains robust, although fulfilling demand remains challenging.
READ THE FULL FEBRUARY 2022 REPORT:FDI_Report_February_2022
We encourage all North American fastener distributors to take part in the FDI. If you are interested in being a more active part of the fastener industry, you can apply to add your company to the FDI survey group. Complete the “Request an Invitation to Participate” form by clicking here. Once verified, you will receive login ID and password information and you will be notified by email every month when the survey period has been opened. – Fastener News Desk
About the Fastener Distributor Index (FDI).
The Fastener Distributor Index (FDI) was developed as a service to the fastener industry by the FCH Sourcing Network in 2012 to be a new benchmark for the fastener industry.
The FDI is a monthly survey of North American fastener distributors, conducted with the FCH Sourcing Network and Baird with support from the National Fastener Distributors Association. It offers insights into current fastener industry trends/outlooks. Similarly, the Forward-Looking Indicator (FLI) is based on a weighted average of four forward-looking inputs from the FDI survey. This indicator is designed to provide directional perspective on future expectations for fastener market conditions. As diffusion indexes, values above 50.0 signal strength, while readings below 50.0 signal weakness. Over time, results should be directly relevant to Fastenal (FAST) and broadly relevant to other industrial distributors such as W.W. Grainger (GWW) and MSC Industrial (MSM).
The FDI Survey website is a resource than can be accessed by anyone, but it can only be updated by registered users during the monthly open survey period, which occurs during the last week of each month.
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Fastener Distributor Index