The Fastener Distributor Index (FDI) survey for May, 2023 dropped again last month to 44.7 after reading 46.3 in April, seasonally adjusted. The Forward Looking Indicator (FLI) remained glum but ticked upward slightly to 40.6.
The seasonally adjusted Fastener Distributor Index (FDI) weakened further to 44.7 compared to 46.3 in April. Respondents pointed to declining new business opportunities and general softening in the economy as the driver of the m/m decline. The Forward-Looking Indicator (FLI) improved slightly, albeit remaining well below the neutral-50 reading, reading 40.6 vs. April 37.8. Overall, the FDI/FLI results and Fastenal’s daily sales both suggest conditions remained soft in the fastener distribution market in May.
READ FULL FDI REPORT:FDI_Report_May_2023
Stay tuned for episode #189 of the Fully Threaded Radio podcast for further commentary on the May 2023 FDI. Tune in at FullyThreaded.com
FND encourages all North American fastener distributors to take part in the FDI Monthly Survey.
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.
Fastener Association, Fastener Distributor Index, Fastener News, Fastener News Desk, Fastener News Podcast