The Durable Goods Orders report is an economic indicator that offers insights into the health of the U.S. manufacturing sector and the overall economy.
It tracks the volume of new orders, unfilled orders, and shipments placed with domestic manufacturers for the production of durable goods for various industries.
Durable goods are items with a lifespan of at least three years, such as vehicles, machinery, and appliances.
What is the Durable Goods report?
Durable goods are an essential component of the economy, as they represent a significant portion of consumer spending and investment. Their production often requires substantial capital investment, labor, and resources.
As a result, changes in durable goods orders can provide early signals of shifts in economic activity and demand.
The report provides a detailed breakdown of new orders, shipments, unfilled orders, and inventories by industry and product category, enabling analysts, traders, and policymakers to gain a comprehensive understanding of the trends in durable goods demand.
Why is the Durable Goods report important?
The Durable Goods Orders report is crucial for several reasons:
- Economic health: Changes in durable goods orders can indicate shifts in consumer and business confidence, as well as the overall economic outlook. A rise in orders suggests increased demand and potential growth, while a decline may signal a weakening economy.
- Manufacturing activity: The report offers insights into the health of the manufacturing sector, which is a vital component of economic growth. Strong demand for durable goods can lead to increased production, job creation, and investment in the manufacturing industry.
- Market impact: The release of the Durable Goods Orders report can impact financial markets, as it influences expectations about future economic growth, interest rates, and inflation. Traders and investors use the data to inform their decisions and assess the potential impact on stocks, bonds, and currencies.
- Monetary policy: The Federal Reserve monitors the Durable Goods Orders report when setting monetary policy, as it provides valuable information on the state of the economy and inflationary pressures.
Who publishes the Durable Goods report important?
The Durable Goods Orders report is compiled and published by the U.S. Census Bureau, a division of the U.S. Department of Commerce.
The data is collected through the Manufacturers’ Shipments, Inventories, and Orders (M3) survey, which gathers information from approximately 5,000 domestic manufacturers across various industries.
When is the Durable Goods report released?
The Durable Goods Orders report is released monthly, usually around the fourth week of the month following the reporting period.
The data is available on the U.S. Census Bureau’s website and includes both preliminary and revised figures.