FPDA Member Report Sales Growth in January – 2014 Outlook Remains Unchanged

The January survey had 43 respondents comprised of 34 distributors and nine manufacturing firms. Highlights:

The January FPDA Index grew with a solid reading of 63.5, up nicely from December’s reading of 56.1. The broader ISM index declined to 51.3 in January, falling below December’s reading of 57.0.
January sales were up 3 percent year-over-year vs. 5 percent in December; two-thirds of sources reported weather negatively impacted demand.
The 2014 outlook remains unchanged at 5-6 percent growth following flat sales in 2013 and is supported by better order activity in January and growing backlogs.
Inventories grew sequentially and year-over-year in January as sources appeared more willing to build inventories to support the current demand environment.