{"id":538866,"date":"2022-11-04T12:00:37","date_gmt":"2022-11-04T11:00:37","guid":{"rendered":"https:\/\/ftmo.com\/?p=538866"},"modified":"2022-11-04T12:11:52","modified_gmt":"2022-11-04T11:11:52","slug":"economic-calendar-durable-goods-orders","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/economic-calendar-durable-goods-orders\/","title":{"rendered":"Economic Calendar – Durable Goods Orders"},"content":{"rendered":"
Durable Goods Orders is another good indicator of manufacturing activity which provides investors with important information about the state of a country\u2019s economy. Why is it important to investors and economists?<\/span><\/i><\/p>\n The name implies that durable goods are not intended for immediate use (such as food, fuel, medicine, office supplies, alcohol, etc.), do not expire quickly and are not consumed in a single use but provide benefits over an extended period of time. These are products that should have a lifespan of more than three years, so the time between purchases of each product can be very long. They include, for example, household appliances, furniture and equipment, cars, tyres, car batteries, consumer electronics, luggage, sports equipment, jewellery, medical equipment, toys, as well as weapons or aircraft.<\/span><\/p>\n Durable goods account for a relatively important part of the economic output in developed economies (consumer spending is divided into spending on non-durable goods, durable goods and services). These goods retain their value longer and are more expensive, so consumers and firms invest money in them when they are economically healthy. In the times of crisis, on the other hand, their demand for these goods falls, as can be seen in the chart below (large falls between 2007 and 2009, and also during the Covid-19 pandemic).<\/span><\/p>\n Durable goods orders reflect the change in the total value of new orders for these goods. The figure is published monthly approximately 18 days after the beginning of the month under review by the Census Bureau as the Advance Report on Durable Goods Manufacturers\u2019 Shipments, Inventories, and Orders. It is compiled from a survey based on data from manufacturing firms with annual orders of at least $500 million.<\/span><\/p>\n It is a good leading indicator for predicting developments in the manufacturing sector, industry, the labour market or for measuring confidence in the retail sector and a country\u2019s economic growth. The U.S. Bureau of Economic Analysis uses the survey data from the Durables report <\/span>in calculating GDP<\/span><\/a>, the Fed and Treasury use it in the monetary and fiscal policymaking, and it is used by economists and investors\u00a0 in analysis and forecasting.<\/span><\/p>\n<\/p>\n
Suitable for all<\/h2>\n