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

Following two consecutive monthly decreases, new orders for manufactured durable goods in June 2018 rose 1.0% or $2.5 billion to $251.9 billion, per the advanced report.  The increase was primarily due to transportation equipment, which gained 2.2% or $1.9 billion to $87.7 billion.  Shipments of manufactured durable goods, up 10 of the past 11 months, advanced 1.7% or $4.1 billion to $251.6 billion, driven by transportation equipment climbing 3.8% or $3.1 billion to $85.3 billion.

The Purchasing Managers’ Index (PMI) continued to expand in June 2018, increasing 1.5 ppts in 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.  Some respondents stated 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 caused uncertainty, consumed resources and inflation elsewhere in the supply chain.

The Consumer Confidence Index increased from 127.1 in June to 127.4 in July.  Consumers’ were optimistic about current conditions and job prospects, however short-term outlooks for business conditions and the labor market were mixed.   

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 rose 0.3% over the prior month.

Per the advanced report, real Gross Domestic Product (GDP) increased at an annual rate of 4.1% in Q2 2018, which compared to 2.2% growth in Q1 2018 and 2.9% expansion in Q4 2017.  Positive contributions from personal consumption expenditures, exports, nonresidential fixed investment and federal and state/local government spending offset declines in private inventory and residential fixed investments.  Imports, a detractor from GDP, have risen.

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

88-02 69th Road Forest Hills, NY 11375 Phone: 718-268-4376 Fax: 718-425-9784