FDI ‘Slightly Softer’ in January - Modern Distribution Management

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FDI ‘Slightly Softer’ in January

The adjusted Fastener Distributor Index was 52.7, although modest improvement was seen in most metrics, according to the latest analysis.
FDI January 2022

The seasonally adjusted Fastener Distributor Index for January was “slightly softer” at 52.7, but modest underlying improvement was seen in most metrics, according to the latest analysis from Baird, FCH Sourcing Network and the Institute for Supply Management.

The seasonal adjustment factor downwardly impacted results as January is “normally the strongest month of the year for the index,” the analysis states.

Responders pointed to “customer fatigue amid erratic supplier deliveries and lead times.”

The Forward-Looking Indicator also was modestly softer as well, coming in at 62.8 because of higher inventory levels and a “less-optimistic six-month outlook.”

“Net, we believe fastener market conditions were mostly stable with December with continued very strong demand partially weighed down by persistent supply chain challenges,” the analysis states.

December’s FDI was 56.2, which followed 57.6 in November.

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