The seasonally adjusted Fastener Distributors Index set a record-low during April, hitting the lowest mark in the index’s nine-year history.
April’s FDI declined 4.4 points to 40, while the forward-looking-indicator (FLI) improved 2.9 points to 36.2.
“Conditions remain very weak, but expectations for a gradual reopening of the economy have some participants leaning slightly more optimistic than previously,” R.W. Baird analyst David Manthey wrote.
The April sales index fell 20.6 points to 14, compared to 54.9 just two months earlier.
Hiring in April stabilized, with the month’s reading of 26.8 nearing March’s 27. No FDI survey respondent noted higher employment levels compared to seasonal expectations for a second-straight month and 46% characterized employment as below expectations, Manthey noted.
Respondent inventories increased 3.4 points to 68.3, while customer inventories dipped 1 point to 47.6.
Month-to-month pricing increased 9.8 points to 59.8, while pricing improved 6.3 points to 67.1.
Outlook continues to be pessimistic, with 54% of respondents expecting lower activity over the next six months (73% in March), 34% predicting higher activity (16% in March), and 12% anticipating similar activity (March 11%).
“We lost 80 percent of our sales,” one respondent noted. “It will not get better if we continue the [shelter in place] since most of our customers are closed. Those that are open have limited work they are allowed to do at this time.”
“We are hoping for higher activity once the stay at home orders are lifted,” another respondent commented.
“Even with some states opening up, the climb back to normal levels I expect to be slow. Some manufacturing was already trying to recover from 2 slow quarters prior to the pandemic.”
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
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