Fastener Distributor Index – November 2022
The Fastener Distributor Index (FDI) survey for November, 2022. The FDI rebounded with a 54.9 reading for the month, seasonally adjusted, after 2 months of sub-50 reports.
The Forward Looking Indicator (FLI) seemed to offset hopes of sustained improvement as it remained relatively unchanged at 42.0, reflecting expected weaker market conditions.
Key Takeaway:
The November seasonally adjusted Fastener Distributor Index (FDI) rebounded sharply vs. last month, coming in at 54.9 (vs. October 44.3). This broke the streak of two consecutive sub-50 (contractionary) readings, indicating market conditions improved vs. last month. Consistent with this, demand commentary was a bit more positive than recent months. Additionally, supply chain constraints continued to ease, with noticeable improvement in ocean freight times commented on by multiple respondents. That said, the Forward-Looking Indicator (FLI) registered another sub-50 index value, reading 42.0, suggesting the bounce in the FDI could prove to be short lived. Overall, fastener market conditions improved in November relative to October, although conditions clearly remain choppy/uncertain.
Read full report:
Listen to episode #183 of the Fully Threaded Radio podcast 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.
RELATED CONTENT:
Share this post
This site uses Akismet to reduce spam. Learn how your comment data is processed.
Leave a Reply