Durable Goods Orders

The release

How it is measured.

The Census Bureau surveys manufacturers each month about their shipments, inventories and new orders, and publishes an advance report for durable goods ahead of the full report on factory orders. The figures are in dollars and are not adjusted for price changes.

Why markets watch it.

An order placed now is production later, so orders are read as a leading indication of factory output. One line, orders for capital goods excluding defence and aircraft, is followed as a guide to what businesses are investing in equipment.

How it is commonly misread.

The headline is dominated by aircraft. A single large order for airliners can swing the total by more than everything else combined, and be reversed the next month, which is why the figure excluding transport is the one usually discussed. Because the values are not adjusted for prices, orders can rise when only prices have. The advance figures are revised in the full report.

An explanation of why the release is followed, not a view on what any market will do when it is published. Educational information, not investment advice or a recommendation to trade.