After two consecutive months of decline, the seasonally adjusted Fastener Distributor Index (FDI) surged in January, climbing to 51.4 from 44.4 the previous month, according to R.W. Baird analyst David Manthey.

“This was driven by much stronger selling conditions, which produced a seasonally adjusted sales index of 50.0 vs. just 34.9 last month, as well as improvement in the survey’s employment component,” Manthey writes.

About 53% of respondents saw sales growth above seasonal expectations, while 23% characterized sales as below seasonal expectations.

Pricing remained stable sequentially for a large majority of respondents.

The Forward Looking Index accelerated to 50.9, “reflecting improvements among all four components (six-month outlook, respondent inventories, customer inventory levels, and employment).”

Hiring sentiment was slightly more optimistic m/m, as 27% of respondents characterized the pace of hiring as having picked up vs. December, while another 60% indicated the pace was stable sequentially.

But while trends improved in January, qualitative feedback indicated muted demand.

“Starting the year [with a] flat month for January,” one respondent commented.

“Auto sector is trending lower,” another participant said.

The six-month outlook gained, however, with only 17% of respondents now expecting lower activity six months from now (down vs December 28%), 50% expecting similar activity (December 47%), and 33% expecting higher activity (December 25%).

The FDI is a monthly survey of North American fastener distributors conducted by the FCH Sourcing Network, the National Fastener Distributors Association, and Baird. Web: fdisurvey.com