FASTENER DISTRIBUTOR INDEX (FDI) | SEPTEMBER 2022hdfadmin
The Fastener Distributor Index (FDI) survey for September, 2022. The FDI returned to contractionary territory last month with a 47.6 reading, seasonally adjusted, after rising to 52.6 the previous month.
The Forward Looking Indicator (FLI) remained virtually unchanged at 47.5, reflecting general uneasiness with expected market conditions.
The September seasonally adjusted Fastener Distributor Index (FDI) retreated once again to a sub-50 reading at 47.6 as the FDI continues its recent choppy pattern of bouncing up/below the neutral level. This was consistent with the sharp contraction registered in last month’s Forward-Looking Indicator (FLI), which we suggested could result in a contractionary reading for September. Demand commentary remained bearish, with many expecting further normalizing demand as customers burn through inventory. Looking forward, the Forward-Looking Indicator (FLI) remained at sub-50 levels, reading 47.5,suggesting additional declines in the FDI could be likely next month. Overall, September was a relatively soft month for fastener distributors and we suspect further softening ahead.
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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 #181 of the Fully Threaded Radio podcast for further commentary and analysis. FullyThreaded.com.
Contact: Eric Dudas | O: 877.332.7836 | C: 630.532.2442