The seasonally adjusted Fastener Distributor Index (FDI) for February was 66.1, up from 57.7, in January, according to the latest analysis from Baird, FCH Sourcing Network and the Institute for Supply Management.

Said Dave Manthey of Baird, “Key themes among respondents included: customer inventory levels which are increasingly stretched thin, very extended supplier lead times/continued freight challenges, and steel inflation which continues to flow through pricing.”

The Forward-Looking Indicator (FLI) surged to an all-time high of 73.9 from 66.7 in January. According to the report, the FLI “implies additional expansionary readings in the months ahead.”