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 decreased 0.1% in January 2018 after four months of consecutive gains.  Manufacturing was flat month-over-month, while utilities increased 0.6% and mining declined 1.0%.  January’s industrial production advanced 3.7% from year-ago levels.  Capacity utilization was 77.5%, a rate that is 2.3 ppts below the 1972 to 2017 average.

New orders for manufactured durable goods in December 2017, per the full report, increased 2.8% or $6.8 billion to $249.3 billion after climbing 1.7% in November.  The rise in new orders was driven by transportation equipment, which advanced 7.1% or $5.7 billion to $86.9 billion.  December shipments of manufactured durable goods were up 0.5% or $1.2 billion to $246.5 billion, following a November increase of 1.3%.  

The Purchasing Managers’ Index (PMI) declined 0.2 ppts in January 2018 to 59.1%.  A value above 50% signifies expansion in the manufacturing industry.  January’s PMI reflected growth in 14 of 18 industries including: machinery; computer & electronic products; primary metals; miscellaneous manufacturing; transportation equipment; fabricated metal products; and electrical equipment, appliances & components.  Although a fabricated metals respondent indicated a slow start to 2018, the outlook is positive amid rising metal prices and increased orders.    

The Consumer Confidence Index increased 2.3 ppts to 125.4 in January 2018 from the prior month.  Generally, the short-term outlook has improved and consumers are optimistic about current conditions.

Per the advance estimate, real Gross Domestic Product (GDP) increased at an annual rate of 2.6% in Q4 2017, versus 3.2% growth in Q3 2017.  The Q4 rate of expansion was due to positive contributions from personal consumption expenditures, nonresidential and residential fixed investment, exports as well as federal and state/local government spending.  Imports, a detractor from GDP, increased.  The positive performance was partly offset by negative contributions from private inventory investment.  

The seasonally adjusted Consumer Price Index for All Urban Consumers (CPI-U) gained 0.5% in January 2018 from December 2017.  The energy index rose 3.0% month-over-month, while food prices edged up 0.2%.  Excluding food and energy, the CPI-U advanced 0.3% in January.  The seasonally adjusted Producer Price Index (PPI) for total final demand in January increased 0.4% from the prior month. 

In January 2018, the preliminary chemical and allied products Producer Price Index moved up to 290.1 from the prior month’s reading of 288.9.

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