Durable Goods Orders
Definition
Durable goods orders reflect the new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods. The first release, the advance, provides an early estimate of durable goods orders. About two weeks later, more complete and revised data are available in the factory orders report. The data for the previous month are usually revised a second time upon the release of the new month's data.
How This Affects Us
Durable goods orders tell us investors what to expect from the manufacturing sector, a major part of the economy, and as a result a major influence on their investments. Examples of durable goods include cars, appliances, business equipment, electronic equipment, home furnishings and fixtures, housewares and accessories, photographic equipment, recreational goods, sporting goods, toys and games. Orders for durable goods show how busy factories and resellers will be in the months to come. This information provides insight on demand. If companies are spending money they are most likely forecasting growth. In turn the stock is probably rising.