Description:

A dollar figure of durable goods orders that have been placed and will be manufactured in the future. A durable good is a product that has a life span of at least 3 years- items such as computers, appliances, and equipment. Released a week before the Factory Order report and is also known as the advanced report on durable goods.

Released:

3-4 weeks after month’s end

Calculation:

The Department of Commerce contacts 3,500 manufacturers in 89 industries and asks them for figures on new orders, shipments, and inventories. An order is only counted if it has a contract signed for delivery. The dollar figure is made after discounts, but before freight charges are placed.

Key Point:

When durable good orders increase it is a sign that the economy could be heating up; with an increase in orders factory workers will be busy to satisfy customer orders. When orders are up, spending is up and workers have jobs both favorable signs for the economy. The opposite holds true for declining durable goods orders- which could signal a negative sign for the economy. Any significant divergence away from estimates could influence the markets and the Fed.

Release site: Click here