Durable Goods Orders
Candlefocus EditorThe durable goods orders survey has been a reliable indicator for gauging how the economy is performing. It offers an up-to-date snapshot of the state of the manufacturing sector, which is a major component of the U.S. economy. Manufacturers produce tangible goods such as cars, buildings, and tools that are used to produce the goods and services consumers demand.
For investors, durable goods orders can provide insight into the supply chain and the performance of certain industries. The information gleaned from this survey helps investors assess the earnings potential of those industrial leaders and make more informed decisions. This is especially true of those industries that rely heavily on manufactured items such as machinery, technology manufacturing, and transportation.
When durable goods orders numbers come in higher than expected, it typically indicates an economic upswing and an increased demand for products. This usually means increased wages and more taxes. Conversely, when durable goods orders come in lower than expected, it typically means the economy is declining and is headed for a slowdown.
Overall, durable goods orders serve as an essential economic indicator and essential investment data point. By understanding this survey and the data it provides, investors can make more informed decisions and measure the performance of their investments. This makes it one of the most important economic indicators to follow.