Fastener Distributor Index (FDI) survey for June, 2022
The FDI gained slightly last month at 53.8 versus the May reading of 52.7, seasonally adjusted. In contrast, the Forward Looking Indicator (FLI) showed showed signs of sagging optimism and dipped to 51.5 versus 55.4 in May. Still remaining in growth territory, the reading marks the 25th consecutive month of positive (+50.0) outlook.
The June seasonally adjusted Fastener Distributor Index (FDI) reading is 53.8, improved vs. last month, indicating slightly faster growth than May. The pricing indices moderated some (albeit remaining at elevated levels) as respondents noted softening commodity prices and some improvement in material shortages/lead times. Customer demand seemingly remains solid/strong, although a few participants noted some softening ahead was expected. Accordingly, the Forward-Looking Indicator (FLI) fell to just mildly above expansionary levels at 51.5 as respondents offered mixed outlooks (some see no signs of slowdown, others predict softening customer demand in coming months). Net, we believe growth and overall market conditions in June remained solid but see potential signs of decelerating growth in the second half of the year
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.
Listen to episode #178 of the Fully Threaded Radio podcast for further commentary and analysis on the Fully Threaded Radio podcast at FullyThreaded.com.
Eric Dudas | O: 877.332.7836 | C: 630.532.2442
Fastener Distributor Index