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.”