Market importance: High importance.
Meaning: An important indicator for forecasting future production activity.
Release time: Three to four weeks after the end of the relevant month, 8:30 a.m. Eastern Time.
Coverage period: The most recent month.
Revision situation: The possibility of revision is very high.
Durable goods orders represent the quantity of goods that are not easily consumed and ordered within the next month, and this data reflects the manufacturing activity.
By definition, orders generally refer to intended purchases and are expected to be shipped immediately or in future commodity transactions. The statistical data includes the statistics of the orders of automobiles, airplanes, and other heavy industrial products manufacturing capital goods, and other items such as electrical appliances.
Durable goods orders include defense department supplies and transportation department supplies, which are high-priced products. The data changes of these two departments have a great impact on the overall data, so the market also pays more attention to the data changes after deducting the defense department supplies and transportation department supplies.
Generally speaking, if the data increases, it means that the manufacturing situation has improved, which is good for the country’s currency. If it decreases, it means that manufacturing has shrunk, which is bad for the country’s currency. The market generally pays the most attention to the U.S. durable goods orders index. In the United States, the data for the previous month is generally announced in the late month.