The Fastener Distributor Index (FDI) survey for August, 2022. The FDI rebounded to 52.6 last month, seasonally adjusted, returning to expansion territory after dipping to 46.1 the previous month.
In contrast, the Forward Looking Indicator (FLI) sank to 47.4, reflecting growing uneasiness with expected market conditions, and ending the streak of 26 consecutive months of positive (+50.0) outlook.
Key Takeaway:
The August seasonally adjusted Fastener Distributor Index (FDI) bounced back nicely from last month’s sub-50 reading, increasing back into expansionary territory at 52.6. This was consistent with a still very positive FLI reading last month. Demand commentary seemed to suggest further slowing ahead is likely, however, with commentary noting customers are pushing out deliveries and trying to preserve cash in some cases. Pricing remained fairly stable with last month and still at elevated levels. Looking forward, the Forward-Looking Indicator (FLI) retracted to just 47.4, however, as respondents remain overall cautious. Net, August marked a nice bounce back from a soft July but forward-looking commentary and
the FLI indicates more choppy conditions ahead are likely.
READ FULL REPORT:
FDI_Report_August_2022
FND encourages 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.
Click in to episode #180 of the Fully Threaded Radio podcast to hear from Baird analyst Quinn Fredrickson. FullyThreaded.com.
Contact:
Eric Dudas | O: 877.332.7836 | C: 630.532.2442
www.fastenersclearinghouse.com
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