04/09/2013

FPDA Key Economic Indicators Show Improved Backlogs in March

The FPDA survey suggests backlogs improved sequentially for the second consecutive month following eight months of decline. 

A net 46 percent of participants reported weaker-than-expected sales in February, which declined 5 percent on average; this is a sharp slowing from the 4 percent growth reported in January. The results look less bad after adjusting for one fewer selling day in February and one extra day in January. 

Improving orders and backlogs appear to be outweighing the weaker-than-expected February results as distributors and manufacturers are leaving their full-year outlook unchanged at 4 percent. 

Inventory sentiment also appears to be improving as a net 37 percent of participants categorize their inventory levels as “too high,” which is just slightly above the long-run average of 33 percent and down from 44 percent in January. 

To view the complete March report, please click here.