What is it?
Each month, the Commerce Department reports on new orders manufacturers have received for durable goods - goods expected to have a life span of at least three years. The Durable Goods report is considered timely and important to the markets - a key manufacturing sector report. The report can give insights into the levels of demand and investment in the sector. At the same time, though, it is quite volatile and is frequently revised, making it difficult to interpret from month to month.
Part of the report is the sub-category of non-defense orders. Often, this sub-category receives more attention than the headline number. Additionally the non-defense capital goods portion of the report is often used to predict a similar component of Gross Domestic Product. Other sub-components become part of the Index of Leading Economic Indicators - new orders for consumer goods and new orders for non-defense capital goods.
| 
