Definition:
Its official name is Advance Report on Durable Goods Manufacturers' Shipments and Orders. This is a government index that measures the dollar volume of orders, shipments, and unfilled orders of durable goods. Durable goods are new or used items generally with a normal life expectancy of three years or more. Analysts usually exclude defense and transportation orders because of their volatility.
Importance:
This report gives us information on the strength of demand for US manufactured durable goods, from both domestic and foreign sources. When the index is increasing, it suggests demand is strengthening, which will probably result in rising production and employment. A falling index suggests the opposite. This is also one of the earliest indicators of both consumer and business demand for equipment. Increased expenditures on investment goods reduces the prospect of inflation.
Source:
The Census Bureau of the Department of Commerce.
Availability:
Around the 26th of the month at
Frequency:
Monthly.
Revisions:
The data are revised monthly for the prior two months to reflect more complete information. New seasonal adjustment factors are introduced every year. This revision affects at least three years worth of data. The significance of this revision can be substantial.
Raw Data:
http://www.census.gov/ftp/pub/indicator/www/m3/index.htm
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