6/12/2012 12:05:00 AM
HEADLINES
FDI Finds Stronger Sales & Flattening Prices
The Fastener Distributor Index (FDI) rebounded to 56.3 for May, up from 53.8 the previous month.
Sales grew to 58.8 from 55.1 the previous month, still below the 60+ showings of the opening quarter of 2012.
Contributors to lagging sales include Supplier Deliveries (61.3 in May vs. 59 in April), which are “at the slowest level of the year,” and Customer Inventories (46.3 in May, vs. 42.3 in April) which, “while still “too low,” seemed to trend toward heavier buying activity.”
In May automotive and construction end markets fared “a bit better” than the broad trend, but the index found “no market trended worse.”
However, optimism continued to erode last month, the FDI found. About 43% of respondents expect higher activity in six months, compared to 62% in April. Both months recorded 10% that expect lower activity.
“This is still positive – far more people are optimistic than pessimistic – but the ranks of those expecting “Same” are swelling.”
Fewer respondents saw higher annual pricing — 46.2% in May, lowest of the year). “This does not mean lower prices; the “same” camp has grown the last two months in both the sequential and annual question.
The FDI is a monthly survey of North American fastener distributors. 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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