What this release is
Durable Goods Orders m/m measures the value of new orders placed with domestic manufacturers for durable goods, which are items designed to last three years or more. This key business sector indicator is published monthly by census.gov, providing insight into the health of the manufacturing industry.
Forex traders monitor this release as a gauge of business investment and consumer demand for big-ticket items. Stronger orders typically signal economic expansion and future manufacturing activity, which can influence expectations for central bank monetary policy and the US Dollar. Conversely, weaker orders may suggest economic slowdown.
The market typically focuses on the headline month over month percentage change in durable goods orders. Analysts often give particular attention to the core reading, which excludes the volatile transportation sector. Revisions to previous months’ data can also influence market sentiment after past releases.