The Fastener Distributor Index (FDI) survey for January, 2023 rebounded modestly last month with another contractionary reading of 47.7, seasonally adjusted, rising from 43.8 the previous month.
The Forward Looking Indicator (FLI) continued its decline coming in at 41.4 after an already weak 45.0 reading in December.
Key Takeaway:
The seasonally adjusted Fastener Distributor Index (FDI) began 2023 with another sub-50 reading, albeit modestly improved over the previous month with a reading of 47.7. Commentary was mixed as some respondents pointed to still-strong customer backlogs and solid demand, while others saw significant slowing and cancellation of large blanket orders. Looking ahead, the Forward-Looking Indicator (FLI) continued to retreat further with a downbeat 41.4 reading, suggesting participants largely expect further
softening. Overall, the FDI/FLI continue to suggest a slowing demand backdrop for fasteners.
Stay tuned for episode #185 of the Fully Threaded Radio for further commentary and analysis.
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.
Fastener Distributor Index, Fastener News
