07/08/2014

FPDA Monthly Economic Indicators Report Points to Acceleration

The FPDA monthly fluid power survey indicates sales are up 5 percent in May, in line with April demand, with 2Q activity accelerating (up 5 percent) after a softer than expected first quarter (up 3 percent). The current outlook of 6 percent implies sales will accelerate to 7-8 percent over the remainder of the year, and sources indicating better underlying demand and strengthening backlogs support the 2014 projections.

Highlights of this month’s report include:

• The May FPDA Index produced a reading of 56.7, down from April's reading of 59.1, while the broader ISM improved in May to 55.4 from 54.9 in April.
• The monthly fluid power survey indicates May sales were up 5 percent year-over-year, in line with April trends (adjusting for the Easter shift), as demand through the first two months of the second quarter has accelerated, growing 5 percent year-over-year, versus 3 percent year-over-year growth in the first quarter.
• The 2014 outlook is unchanged, with sources forecasting 6 percent growth, up from flattish trend in 2013 and implying sales will accelerate to 7-8 percent over the remainder of the year.

Fluid Power Survey Results - June 2014