United States - Durable Goods

What is the U.S. Durable Goods Report?

The U.S. Durable Goods Report is a critical economic indicator representing the value of orders and shipments for goods expected to last at least three years. This data, collected and published monthly by the U.S. Census Bureau, encompasses a wide range of products, from household appliances to aircraft. As a barometer of manufacturing health, this report offers insights into consumer and business spending patterns, making it a valuable resource for investors and market analysts.

Methodology

The methodology behind the U.S. Durable Goods Report involves collecting data from manufacturers on orders, shipments, inventories, and unfilled orders for durable goods. This data is then adjusted for seasonal variations to provide a clearer picture of market trends. The report is divided into categories such as transportation, machinery, and electronic products, offering a detailed view of different sectors within the economy.

Global Relevance

While focused on the U.S. economy, the Durable Goods Report holds significant global relevance. As one of the world’s largest economies, U.S. manufacturing trends can have a ripple effect on global markets. This report is closely monitored by international investors and policy makers, as it provides insights into American consumer confidence and business investment trends, which are critical indicators of global economic health.

Interpretation

As a coincident indicator, the U.S. Durable Goods Report is best used to validate economic forecasts made using leading indicators. It reflects the current state of economic activities, particularly in manufacturing and consumer spending. While it does not predict future trends, it confirms whether anticipated economic changes, such as increases or decreases in consumer spending and manufacturing activities, are occurring. This makes it an invaluable tool for investors and analysts to gauge the current economic climate and adjust their strategies accordingly.