What are Durable Goods Orders?
Durable Goods Orders
Forex Trading Glossary
Quick Answer: Durable goods orders track new orders for products meant to last at least three years, offering insight into manufacturing demand.
What are Durable Goods Orders?
Durable goods orders measure new orders placed with domestic manufacturers for goods expected to last three years or longer, such as aircraft, vehicles, and machinery. The report is a leading indicator of manufacturing activity.
Key Components
- Headline orders: Includes volatile transportation items.
- Core capital goods: Excludes defense and aircraft to reveal underlying business investment.
- Revisions: Prior-month updates can move markets.
- Shipments and inventories: Provide insight into production trends.
FX Impact
Stronger-than-expected orders often lift currencies tied to manufacturing strength, such as USD or JPY.
Trading Durable Goods Data
- Focus on core figures: Core orders offer cleaner signals than the headline.
- Compare to forecasts: Surprises relative to consensus drive reactions.
- Cross-check: Align with PMI and industrial production data.
- Watch revisions: Secondary moves occur when prior data is heavily revised.
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