Durable Goods Orders is an indicator released by the Census Bureau and it shows the total value of new purchase orders placed with manufacturers for durable goods.
The very notion of durable goods refers to finished goods that have a life span more than three years, and in this category we can include automobiles, computers, aircraft, etc. They are closely watched by traders as, excluding the aircraft number, the actual release has direct roots in the US GDP and hence it is important for the overall economic activity.
Rising durable goods implies manufacturers will increase activity for filling the orders the company has, so a positive trend for this indicator signals a pick up for the industrial production as a whole and therefore its importance.
Looking back at the six months data we are analyzing under our project here and there is a clear rising trend for the last three months and this rising trend, if continued in the months to come, should signal the recovery of the industrial activity. For more clues about the sector one should look at Factory Orders indicator and Industrial Production/Capacity Utilization.
The most important things to take into consideration when looking at the Durable Goods Orders are:
- Release date: monthly, about 26 days after the month ends;
- Release time: 12:30 GMT, during the North American trading session;
- First tier data;
- Usually revised via the Factory Orders indicator that comes one week later.