05/12/2014

FPDA Members Report Accelerating Demand

The April report on Economic Indicators, prepared for FPDA by Cleveland Research using March data, highlights a reacceleration of demand as weather headwinds from January and February subside. On a quarterly basis, average sales were up 3 percent year-over-year in the first quarter, improving from 2 percent year-over-year growth in the fourth quarter, with quarterly growth the strongest since the third quarter of 2012. Stronger order activity and improving project pipelines point to better growth in the calendar second quarter and support the 6 percent outlook for sales growth in 2014.

The March FPDA Index produced a reading of 57.5, up from February’s reading of 55.8. The broader ISM strengthened in March to 53.7, up slightly from 53.2 in February. Sales accelerated in March, growing 4 percent year-over-year, up from 1 percent year-over-year growth in February as weather headwinds appear to be subsiding.

Members maintained the full year 2014 outlook, forecasting 6 percent year-over-year growth, indicating demand is expected to accelerate in the second quarter, driven by strong project activity. The pricing environment is very competitive, with participants indicating large OEM’s are pushing back more aggressively than in the past. To see the full report, click here (remember that your user name is your email address; if you do not remember your password, just click “Forgot Password” and set a new one).