Durable Goods Orders

About

Durable goods orders are a key economic indicator that measures the demand for long-lasting manufactured goods, such as machinery, vehicles, and appliances. These goods are defined as items that last at least three years. The data is collected by the U.S. Census Bureau through its Manufacturers' Shipments, Inventories, and Orders (M3) survey, which gathers information from thousands of domestic manufacturers. Durable goods orders provide insights into future production levels and are closely watched by investors, policymakers, and analysts to gauge economic health. An increase in durable goods orders typically indicates an improving economy, as businesses and consumers are more likely to invest in these goods when they are confident about future economic conditions. Conversely, a decline may signal economic uncertainty. The data is often volatile due to large orders, so analysts may focus on core durable goods orders, which exclude transportation equipment to reduce volatility. This indicator is crucial for understanding manufacturing sector activity and its impact on the broader economy.