The Fastener Distributor Index FDI for September “remained in growth territory” at 51.1, although results were lower than August’s reading of 53.1.
"Despite implications for modest ongoing growth, September sales proved mixed, with just 53% of respondents noting flat or stronger selling conditions versus the preceding month," wrote independent analyst Charles Redding.
For September, 53% of respondents cited unchanged/ stronger sales versus the August period (68% last month).
Regarding customer inventories, 22% of participants viewed current levels as "too high."
"Conditions remain choppy for many fastener distributors, in our view, as intense sales and pricing pressure continues."
September’s “notably tepid employment sentiment” could suggest a slowdown in hiring among manufacturers,” Redding added.
For September, 91% of participants cited unchanged (or weaker) hiring conditions versus the prior month (79% in June).
"Not surprisingly, last month’s US jobs report came in weaker than expected (+151K adds vs. +180K consensus), reflecting mixed hiring conditions for many domestic manufacturers (US BLS)."
Last quarter, Fastenal reiterated its hiring freeze, excluding necessary vending/IT administration adds.
Overall survey commentary continues to imply “notable divergence” among select fastener distributors,” according to the FDI.
"After a strong first half, Q3 activity level has fallen significantly…we anticipate more of the same in Q4," one respondent noted.
Another indicated that “Q3’16 was our weakest quarter in three years.”
The FDI is a monthly survey of North American fastener distributors, conducted with the FCH Sourcing Network and the National Fastener Distributors Association.
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