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 declined 0.6 % in January 2019 following a 0.3% gain in the previous month.  Manufacturing output fell 0.9% largely due to decreases in motor vehicle assemblies.  The mining and utilities indices moved up 0.1% and 0.4%, respectively.  Capacity utilization for the industrial sector declined 0.6 ppts to 78.2% in January and remains 1.6 ppts below the 1972-2018 average.  Year-over-year, industrial production increased 3.8%.  

New orders for manufactured durable goods continued to strengthen in December 2018, increasing 1.2% or $3.0 billion.  Transportation equipment, up four of the past five months, led the increase, rising 3.3% to $90.2 billion.  Shipments of manufactured durable goods, also up four of the previous five months, gained 0.8% or $2.1 billion to $259.7 billion, driven by transportation equipment shipments that advanced 1.5% or $1.4 billion to $91.4 billion.
 
The Purchasing Managers’ Index (PMI) rose 2.3 ppts to 56.6% in January 2019.  A value above 50% signifies expansion in the manufacturing industry.  From the 18 industries surveyed, 14 reported growth.  Respondents in the machinery, fabricated metal products and miscellaneous manufacturing industries anticipate a favorable start to 2019 based on sales backlogs and forecasts. 

The Consumer Confidence Index continued to fall in January 2019 to 120.2 from 126.6 as of December.  While economic conditions generally remain positive, expectations declined significantly due to market volatility coupled with the negative effects of the government shutdown.  Consumers expect business conditions and the labor market to weaken through the next six months.

The seasonally adjusted Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in January 2019.  The energy index decreased for the third consecutive month, offsetting increases in other categories.  The seasonally adjusted Producer Price Index (PPI) for total final demand slipped 0.1% from December to January.

Per the third estimate, real Gross Domestic Product (GDP) increased at an annual rate of 3.4% in Q3 2018, off 0.1% from the second estimate.  Personal consumption expenditures and exports were revised downward, offsetting an upward revision to private inventory investment.  Imports, a detraction from the GDP, have risen.

The preliminary chemical and allied products Producer Price Index decreased from 292.1 in December to 289.4 in January.

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