Complete Story
 

11/23/2011

Nov. FPDA Key Economic Indicators Show Growth

Nov. FPDA Key Economic Indicators Show Growth

FPDA Index Up from October – The November FPDA Key Economic  Indicators index produced a reading of 67.6, up from October’s reading of 62.26. This indicates the fluid power industry expanded at a faster pace compared to October. The broader ISM index also showed a higher reading of 52.7 in November, up from the October reading of 50.8.

Sales Growth Accelerates in November –Sales growth among fluid power participants accelerated from 17% in October to 21% in November. Distributors account for the bulk of the improvement with average sales growth of 28% in the month, up from 20% growth in October. Manufacturers saw a more modest improvement with growth of 15%, similar to the 14% average growth reported in October.

2011/2012 Outlooks Improve – FPDA members have raised their average sales growth forecast for 2012 from 10% to 12%. Commentary points to strong backlogs and incoming orders coupled with higher prices. Members with exposure to mining and oil & gas where activity appears to be accelerating are generally the most optimistic. For 2011, members are now projecting full year growth of 32% on average,  up from 28% last month.

Get more information about the FPDA Key Economic Indicators HERE.