11/12/2013 12:09:00 AM
NEWS BRIEFS
FDI: Distributor Results ‘Improved’ in October
October’s 52.7 improved on September’s 45.4 in the Fastener Distributor Index.
“Employment got better, while inventory dynamics seemed to move more favorably,” noted analyst Holden Lewis of BB&T Capital Markets.
The FDI found respondent inventories are still “too high” but to a lesser degree than the previous nine months. And customer inventories are still “too low,” though survey respondents reported limited restocking activity.
The business outlook remains “favorable,” the FDI found. In October, 54% of respondents predict “better conditions” in six months while 4% think conditions will worsen, down from 6% of respondents in September who predicted a downward trend.
“There remains little fear that the business cycle will take a turn for the worse any time soon; sentiment remains favorable,” Lewis noted.
Sequential and annual price readings improved in October, but the “lion’s share of respondents still report no change.” Pricing continues to run in the low single digits.
Most (54%) expect pricing in 2014 to look much like it has in 2013: “flattish.” But 32% expect to realize pricing of 3%-plus, far better than those that expect to see pricing fall by 3% or more (4%).
“More of the same is expected from pricing in 2014, which is to say minimal,” Lewis stated. “But at least there is little expectation for material pricing pressure.”
The FDI is a monthly survey of North American fastener distributors. The FDI is a joint production of BB&T Capital Markets and the FCH Sourcing Network. Email: hlewis@bbandtcm.com ©2013 GlobalFastenerNews.com
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