7/11/2016 2:12:00 AM
NEWS BRIEFS
June FDI “Modestly Higher”
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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Related Links:
• NFDA
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