FASTENER DISTRIBUTOR INDEX (FDI) | March 2022hdfadmin
The Fastener Distributor Index (FDI) ticked up again last month to 57.2 over the February reading of 56.0, seasonally adjusted.
Strongly rallying, the Forward Looking Indicator (FLI) climbed to 65.4 after sagging to 55.6 the previous month, marking the 22nd consecutive month of positive (+50.0) outlook.
The March seasonally adjusted Fastener Distributor Index (FDI) saw a modest m/m improvement at 57.2 on better sales and employment levels. Despite a slightly weaker reading in the supplier deliveries index amid some manufacturing plant shutdowns in Asia and continued port congestion, the FDI improved for the second consecutive month and remained firmly in expansionary territory. Respondent commentary suggested additional acute inflationary pressures are emerging, particularly in stainless steel, but inbound order activity remains consistently strong. The Forward-Looking Indicator (FLI) also improved m/m at 65.4 amid more optimistic six-month sales expectations and an increased hiring pace. Overall, we believe fastener market conditions remained strong in March, with growth increasing at a slightly faster rate than February.
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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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