Complete Story
 

01/07/2014

Members Report Third Consecutive Month of Positive Sales Growth

FPDA’s monthly economic indicator report for December, compiled in conjunction with Cleveland Research, had 44 respondents (33 distributors and 11 manufacturing firms ) reporting November data. Among other findings:

  • The November FPDA Index produced a weak reading of 44.5, down meaningfully from October’s reading of 63.6. The broader ISM index showed a reading of 57.3 in November, improving from October’s reading of 56.4.
  • Fluid power industry sales were up 1 percent in November following 2 percent growth in October, the third consecutive month of y/y sales growth.
  • Sources continue to expect 4-5 percent growth in 2014 vs. flattish trends in 2013. Slowly improving conditions are expected to continue into next year.

November was the third consecutive month of positive sales growth, with sales up 1 percent y/y (daily sales up 5 percent y/y) following 2 percent growth in October. Our work suggests this slow and steady improvement should to continue into next year with sources forecasting 4-5 percent growth. Improving market conditions support the current 2014 outlook, and orders and backlogs are also improving on a y/y basis.

Upside to the current forecast is likely limited until we see acceleration in mobile OEM builds and some stabilization in oil & gas end markets, which have been deteriorating sequentially in the last 90 days due to excess equipment.

Download the full report.

Sincere thanks to those who participated in the most recent survey. Please continue to share your data monthly when you receive your reporting reminder from FPDA.

Printer-Friendly Version