June’s seasonally adjusted FDI reading (50.6) proved modestly higher, as the index topped 50 for the second time in 2016 (50.1 in May), according to the BB&TCM Fastener Distributor Index.
June results benefitted from a slight uptick in sales among respondents. The sales reading of 50.8 was the first 50+ reading in 2016.
Regarding customer inventories, 14% of participants viewed current levels as “too high”. During the headier growth period of 2013-2014, this metric averaged 4%.
The June sequential point-of-sale pricing index (51.7) marked the third consecutive month of expansion.
“We believe the overall environment for pricing remains notably soft given minimal inflation, although ongoing CPI expansion (+50 bps sequentially in May) remains a modest positive, nonetheless (Bureau of Labor Statistics).”
Last quarter, Fastenal reported fastener price deflation of 1.5%-2%.
Employment (58.6) was unexpectedly higher versus May, as 21% of participants noted increased hiring rates sequentially (only 9% higher last month).
The FDI is a monthly survey of NorAm fastener distributors, conducted with the FCH Sourcing Network and the National Fastener Distributors Association.
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