5/7/2012 12:19:00 PM
NEWS BRIEFS
FDI Report Finds Sales Growth Slows in April
The Fastener Distributor Index (FDI) dipped slightly in April, coming in at 53.8 vs. 55.9 the prior month.
Sales, which had been the strongest component for fastener distributors in March, slipped to 55.1 from 69.4 the previous month, suggesting “more tepid growth to begin Q2 ’12.”
Other factors, such as slower supplier deliveries and low customer inventories, support a “still healthy view” of sales activity, according to the FDI.
“Why April was not so robust is hard to say.”
The FDI noted that “a reading of 53-55 still constitutes sequential growth” for North American fastener distributors.
For the first three months of 2012, the index averaged 56.4.
Just over 61% of respondents expect activity to be “higher” in six months, while 10.3% predicted “lower” sales.
“This is a good reading, but one cannot ignore that the spread has narrowed over the last four months. Respondents feel good about things, but not as good as they did to start the year.”
In March more than 66% of respondents expect activity to be “higher” in six months while just 5.6% said “lower.”
Year-to-year, point-of-sale pricing is up (48.7% of respondents) or “flattish” (43.6%); the rate of change slowed to 2.5%-3% from 3.2%–3.7% the previous month, the FDI found.
The FDI is a monthly survey of North American fastener distributors that aims to provide insight into current trends/outlooks. As a diffusion index, readings above 50 signal strength and below 50 signal weakness.
The FDI is a joint production of BB&T Capital Markets and the FCH Sourcing Network, the online network for industrial fasteners. ©2012 GlobalFastenerNews.com
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