Description: This is a government index that measures the dollar volumes of orders, shipments, and unfilled orders of durable goods. Durable goods are new or used items generally with a normal life expectancy of three years or more. The report provides information on the strength of demand for US manufactured durable goods, from both domestic and foreign sources. A rising index suggests demand is strengthening and will result is rising production and employment. A falling index suggests the opposite.
Durable Goods Orders are considered a leading indicator of manufacturing activity, and the market moves on this report despite the volatility and large revisions that make it a less than perfect indicator. Analysts usually exclude defense and transportation orders because of their volatility. The report is also one of the earliest indictors of both consumer and business demand for equipment. Increased expenditures on investment goods reduce the prospect of inflation.
Release Date: 8:30 AM (EST); monthly, 3 to 4 weeks after the reporting month.