Sector3’s focused expertise produces a targeted, insightful
and truly useful appraisal.

Sector3 helps companies and lenders decipher the underlying value of raw materials, metals, chemicals, plastics, and commodity inventory and machinery and equipment.  We are successful because we:

  • Specialize in the metals, chemicals, plastics, and commodity markets;
  • Offer extensive metals, chemicals, and plastics valuation experience
  • Believe customer service is a long-term objective.  

These advantages set Sector3 apart from other appraisal companies, and
have made Sector3 one of the largest metals, chemicals and commodity appraisal firms in the U.S.

Economic Indicators

Industrial production advanced 0.6% in June 2018 after declining 0.5% in May.  The annual rate of industrial production in Q2 gained 6.0%, the third consecutive quarterly increase.  Motor vehicle part production recovered in June after a fire disrupted a truck assembly supplier, while factory output excluding motor vehicles edged up 0.3%.  The mining index grew 1.2%, manufacturing rose 0.8% and utilities declined 1.8%.  Capacity utilization increased 0.3 ppts in June to 78.0%, which is 1.8 ppts below the 1972-2017 average.  Year-over-year, industrial production in June climbed 3.8%.  

After declining the previous month, new orders for manufactured durable goods in May 2018 decreased 0.6% or $1.4 billion to $248.8 billion, per the advanced report.  The slump was largely due to transportation equipment, which fell 1.0% or $0.9 billion to $86.1 billion.  Following nine months of consecutive gains, shipments of manufactured durable goods edged down 0.1% or $0.2 billion to $246.9 billion.  Transportation equipment drove the decline, down 0.6% or $0.5 billion to $82.1 billion.

The Purchasing Managers’ Index (PMI) increased 1.5 ppts in June 2018 to 60.2%.  A value above 50% signifies expansion in the manufacturing industry.  From the 18 manufacturing industries surveyed, all but one reported growth in June.  Respondents stated that the Section 232 tariffs and retaliatory duties are yielding mixed results.  One fabricated metals representative said the duties are effectively rising domestic prices and limiting capacity.  A miscellaneous manufacturing respondent stated that while tariffs improved raw material margins, they have also complicated planning, consumed resources and inflation elsewhere in the supply chain.

The Consumer Confidence Index decreased 1.9 ppts in June to 128.0 after a increasing the same amount in May.  Consumers’ assessment of current conditions was relatively stable since May, which indicates strong economic growth.  Short-term market optimism eased, but the labor outlook was favorable.

The seasonally adjusted Consumer Price Index for All Urban Consumers (CPI-U) in June 2018 edged up 0.1% month-over-month.  The energy index declined 0.3%, which muted overall growth, while food, shelter and gasoline rose 0.2% each.  The seasonally adjusted Producer Price Index (PPI) for total final demand in June advanced 0.3% over the prior month.

Per the third estimate, real Gross Domestic Product (GDP) increased at an annual rate of 2.0% in Q1 2018, which compared to 2.2% growth per the second estimate and 2.9% expansion in Q4 2017.  Negative contributions were from government spending and a downturn in residential fixed investment, which offset increases in nonresidential fixed investment.  Imports, a detractor from GDP, have fallen.

In June 2018, the preliminary chemical and allied products Producer Price Index increased to 294.5 from the May reading of 292.

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