Durable Goods Orders – United States

The value of orders placed for relatively long lasting goods. Durable Goods are expected to last more than three years. Such products often require large investments and usually reflect optimism on the part of the buyer that their expenditure will be worthwhile.

Because orders for goods have large sway over the actual production, this figure serves as an excellent forecast of U.S. output to come. Durable Goods are typically sensitive to economic changes. When consumers become skeptical about economic conditions, sales of durable goods are one of the first to be impacted since consumers can delay purchases of durable items, like cars and televisions, only spending money on necessities in times of economic hardship. Conversely, when consumer confidence is restored, orders for durable goods rebound quickly. The data is highly volatile as well, some volatility is eliminated with the Durable Goods Orders excluding Transportation figure, making it the more closely watched indicator.

The headline figure is expressed as a percentage change from previous months.

Durable Goods Orders Excluding Transportation

The Durable Goods Orders figure is also reported excluding transportation expenditures. Orders for items like civilian vehicles or aircrafts are fairly expensive and fluctuate idiosyncratically, distorting the Durable Goods Orders figure. Such goods are excluded to provide a better measure of durable goods orders.

Relevance: Tends to move markets on release
Release schedule : 8:30 AM (EST); monthly, 3 to 4 weeks after the reporting month
Revision schedule: previous two months, can be major
Source of report : U.S. Census Bureau
Web Address : www.census.gov
Address of release : http://www.census.gov/indicator/www/m3/adv/
AKA : Advance Report on Durable Goods Manufacturer’s Shipments, Inventories, and Orders

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