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 rose 0.7% in April 2018 after increasing 0.5% the previous month.  Manufacturing output edged up 0.5%, mining advanced 1.1% and the utilities index climbed 1.9%.  Capacity utilization advanced 0.4 ppts to 78.0% in April, but remains 1.8 ppts below the 1972-2017 average.  On a year-over-year basis, industrial production in April rose 3.5%.

Following two months of increases, new orders for manufactured durable goods in April 2018 declined 1.7% or $4.2 billion to $248.5 billion, per the advanced report.  Transportation equipment drove the decrease, falling 6.1% or $5.6 billion to $87.1 billion.  After eight months of consecutive gains, shipments of manufactured durable goods ebbed 0.1% or $100 million to $246.7 billion.  Transportation equipment was the main factor for the reduction in shipments, down 2.1% or $1.8 billion to $82.2 billion.

The Purchasing Managers’ Index (PMI) advanced 1.4 ppts in May 2018 to 58.7%.  A value above 50% signifies expansion in the manufacturing industry.  From the 18 manufacturing industries surveyed, 16 reported growth in May.  Several respondents expressed greater demand while production costs are rising.  One transportation industry representative stated there is more demand but voiced concern regarding tariffs against China limiting supply, while a machinery respondent indicated lead times and costs are climbing.

The Consumer Confidence Index increased 1.9 ppts in May to 128.0 after a slight decline in April.  Consumers’ assessment of current conditions and the short-term outlook improved overall, although views on the labor market were mixed. 

The seasonally adjusted Consumer Price Index for All Urban Consumers (CPI-U) in April 2018 gained 0.2% month-over-month.  The shelter index advanced 3.0% as did gasoline, which was enough to offset declines in other energy categories.  Excluding food and energy, the CPI-U edged up 0.1%.  The seasonally adjusted Producer Price Index (PPI) for total final demand in April rose 0.1% over the prior month.

Per the second estimate, real Gross Domestic Product (GDP) increased at an annual rate of 2.2% in Q1 2018, which compared to 2.3% growth per the advanced estimate and 2.9% expansion in Q4 2017.  Positive contributions were from government spending, private inventory and nonresidential fixed investments as well as exports and personal consumption expenditures.  Downward revisions, however, were made to exports and private inventory and residential fixed investments.  Imports, a detractor from GDP, have risen.

In April 2018, the preliminary chemical and allied products Producer Price Index fell to 291.3 from the March reading of 292.5.

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