The seasonally adjusted Fastener Distributors Index bounced back from April’s record-low reading of 40 to post a five-point gain in May, breaking a string of declines dating back to March, Industrial Distribution reports.

May’s FDI reached 45, while the forward-looking-indicator (FLI) improved 7.7 points to 43.9.

“Several participants commented that business activity seems to have leveled off or improved since April, implying a majority of respondents have perhaps already seen the bottom,” R.W. Baird analyst David Manthey wrote.

The May sales index more than doubled to 28.9, compared to 14 in April.

Hiring in May increased, with the month’s reading jumping to 40 from 26.8 last month.

Respondent inventories rose 1.7 points to 70, while customer inventories increased 1.2 points to 48.8.

Pricing dropped 5.8 points to 61.3, according to Industrial Distribution.

A slim majority of respondents (43%) expect higher activity in June, while 30% expect similar activity and 28% anticipate a drop in demand.

“Sales in May were not great, but definitely better,” one respondent noted.  “It seems like we are off the bottom and moving in the right direction.”

“Regarding revenue, April was down 11.25 percent month/month and our May figures flattened with the exact sales as April, so at least the bleeding has stopped,” another respondent commented.

Regarding headcount, 50% expect no changes, while 37% anticipate a decline and 13% predict employment in their business will grow.

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