The seasonally adjusted Fastener Distributor Index (FDI) for April was 58.7, down from 66 in March, according to the latest analysis from Baird, FCH Sourcing Network and the Institute for Supply Management.

Dave Manthey of Baird said the moderation was “due to supply chain constraints that inhibited growth,” adding that the conditions favor Fastenal.

“We think this sets up well for FAST, which has much deeper/broader supply chains and is currently seeing only modest supply shortages,” he said. “We also view GWW’s [Grainger’s] strong U.S. non-pandemic April sales growth as a positive read-through to FAST.”

The Forward-Looking Indicator (FLI) also moderated to 76.7, but it “continues to signal expansionary demand conditions in the months ahead. Net, supply and freight remain bigger issues than demand in the fastener industry currently.”