The 2020 Mid-Year Economic Update_long

Fastener Distributor Index Down Slightly in June as Shortages Lead to Constraints

The seasonally adjusted Fastener Distributor Index (FDI) for June was 55.8, down from 61.8 in March due to global supply chain issues.
Marc Strandquist blog

The seasonally adjusted Fastener Distributor Index (FDI) for June was 55.8, down slightly from 61.8  in May, according to the latest analysis from Baird, FCH Sourcing Network and the Institute for Supply Management.

“As diffusion indexes, values above 50.0 signal strength, while readings below 50.0 signal weakness,” said Baird’s David Manthey. “Over time, results should be directly relevant to Fastenal (FAST) and broadly relevant to other industrial distributors such as W.W. Grainger (GWW) and MSC Industrial (MSM).

“Supply chain disruptions again showed no signs of abating in June, and shortages appear to be extending towards many commonly stocked items.”

The Forward-Looking Indicator (FLI) also moderated at 71.1, “but remains at a robust level, signaling expected expansionary demand conditions in the months ahead,” according to Manthey. Net, demand and pricing remained strong, but widespread shortages continued to hamper growth.

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