The Fastener Distributor Index (FDI) surged to 66.6 in September vs. August 58.3, marking the highest reading since July 2018 and a 17th consecutive month in expansionary territory.

Improvement was broad-based, led by a sharp improvement in sales and employment, and stretched supplier deliveries. The Forward-Looking Indicator also jumped to 63.6 (56.9 in August), its strongest reading since March 2022.

Respondent commentary was notably upbeat, with participants citing record sales, building opportunities, and data center-driven demand stretching supplier capacity, though freight costs and tariff friction remain irritants.

“We believe the fastener market and broader industrial economy carry strong momentum heading into 4Q26,” wrote R.W. Baird co-authors David Manthey, CFA, and Inara Khan, CFA.

Read the full report here.