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 0.6% in November 2018 after falling 0.2% in October.  Manufacturing output was flat month-to-month, while mining and utilities gained 1.7% and 3.3%, respectively.  Capacity utilization increased to 78.5%, but remains 1.3 ppts below the 1972-2017 average.  Year-over-year, industrial production advanced 3.9%.  

Following two consecutive monthly decreases, new orders for manufactured durable goods in November edged up 0.8% or $1.9 billion to $250.8 billion.  Transportation equipment, up three of the past four months, led the increase, rising 2.9% to $87.0 billion.  Shipments of manufactured durable goods, also up three of the previous four months, gained 0.7% or $1.8 billion to $256.7 billion, driven by transportation equipment shipments that rose 2.0% or $1.8 billion to $89.5 billion.
 
The Purchasing Managers’ Index (PMI) declined 5.2 ppts to 54.1% in December.  A value above 50% signifies expansion in the manufacturing industry.  From the 18 industries surveyed, 11 reported growth.  Numerous respondents said trade actions are continuing to affect market fundamentals.  One transportation industry representative cited demand has softened amid concerns regarding tariffs and the potential downturn in the global economy, while a machinery respondent indicated the ongoing trade war with China is causing long-term costing and sourcing issues. 

The Consumer Confidence Index decreased from 136.4 in November to 128.1 in December.  Expectations for both job prospects and business conditions weakened, but short-term indicators are favorable.  Two consecutive declines reflect growing apprehension that economic growth will begin to slow in the first half of 2019.

The seasonally adjusted Consumer Price Index for All Urban Consumers (CPI-U) remained unchanged in November after gaining 0.3% in October.  The gasoline index fell 4.2%, offsetting growth in various other indices such as shelter and used cars/trucks.  Natural gas and electricity increased, while fuel oil declined.  The seasonally adjusted Producer Price Index (PPI) for total final demand advanced 0.1% from October to November.

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 300.4 in October to 298.5 in November.

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