The Fastener Distributor Index jumped in October, rising 4.5 percentage points to 56.5, driven by higher sales, Industrial Distribution reports.

After declining 31.6 points from July to August, the seasonally adjusted sales index increased 4.3 percentage points to 65.1 in October.

The Forward Looking Index rose to 64.5 – its highest point since January 2018, according to Industrial Distribution.

Employment gained 4.6 points to 58.3 in October, while supplier deliveries improved 6.6 points to 63.9.

Meanwhile, month-to-month pricing improved 2.2 points to 58.3, while year-to-year pricing declined 8.3 points to 72.2.

“We view this breakout as a positive sign going forward, as low customer inventories, coupled with a continued slightly more optimistic tone around hiring, could bode well for near-term prospects,” R.W. Baird analyst David Manthey wrote.

Respondent commentary improved in October.  Only six percent lower activity over the next six months, while 72% expect higher activity and 22% anticipate no change.

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