Web Trader MT5
Durable Goods Orders is a monthly US economic report measuring the value of new orders received by manufacturers for goods that will last three years or more. These goods include airplanes, machinery, appliances, and defense equipment. These are big-ticket expenditures that corporations and governments are making a serious commitment to, and the data is viewed as a proxy for confidence in the economic forecast.
Strong orders indicate businesses are expanding and investing. Weak orders mean they are pulling back and waiting. The headline number can be very variable month-to-month, largely because aircraft orders are huge and lumpy – one big Boeing deal can sway the whole amount.
As such, analysts tend to pay more attention to the ex-transportation and core capital goods orders numbers, which remove the noise and give a cleaner read on underlying company investment.
Example: A month of considerably higher durable goods orders, spurred by a spike in core capital goods, usually lifts equity markets and the dollar; it implies that corporations are investing with confidence. A disappointing result, especially in core orders, raises concerns that the economic upswing is losing steam.
