What are Durable Goods Orders?
The U.S. Census Bureau conducts a monthly survey that measures current industrial activity in the machinery, technology, manufacturing, and transportation industries. Durable goods are built to last at least three years and can include items such as computers, machines, motor vehicle parts and much more. These purchases are a financial commitment and tend to be an investment to both consumers and companies. Durable Goods Orders provide more insight into the supply chain than most indicators because of their position in the industries they come from.
Why are Durable Goods Orders valuable?
A high number of durable goods orders can show economic growth while a low number can indicate contraction. They’re a signal of how busy manufacturers are and will be in the future. When orders increase, consumers typically feel confident in the economy’s health. Which lets investors know there is upward momentum coming for the economy. Durable Goods Orders can provide insight into earnings for a variety of industries and trends in stock prices.
What should you do?
If you’re looking for a key economic indicator to monitor the health of the economy follow Durable Goods Orders. Majestic’s CORE Report follows the Durable Goods Orders; along with other indicators every week to see where the market stands.