The 2020 Mid-Year Economic Update_long

Fastener Distributor Index for July Consistent with Prior Month

The seasonally adjusted Fastener Distributor Index (FDI) for July was 54.6, consistent with improving momentum (above 50 reading) but at a slower rate versus the improvement seen in June.
Fastener Distributor Index July 2020

The seasonally adjusted Fastener Distributor Index (FDI) for July was 54.6, consistent with improving momentum (above 50 reading) but at a slower rate versus the improvement seen in June (FDI decreased m/ m), according to the latest analysis from Baird, FCH Sourcing Network and the Institute for Supply Management.

According to FDI author Dave Manthey, an analyst with Baird, “As a diffusion index, the 54.6 reading indicates the trajectory of sales trends is improving m/m, but activity levels are likely not yet near pre-COVID levels (i.e., market conditions were much stronger in February 2020 despite a 53.0 FDI vs. a 54.6 this month, but trends are increasing at a faster m/m rate now than in February 2020).

“Looking at the drivers of the m/m moderation in the FDI, sales trends continued to improve, but the employment index slightly decreased, dragging down the overall index. The six-month outlook also improved vs. June as participants continue to gain confidence in a recovery taking shape. Net, July showed further m/m recovery, albeit with the pace of improvement moderating relative to the strong improvements seen in May/June.”

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