Durable goods orders

Durable goods orders – is a very important fundamental economic figure, release of which greately influences the Forex market. Durable goods include goods with long term of service, in particular, more than three years. Leading products of this group are passenger cars and trucks, construction material, everyday items. The goods related to transport and military orders were removed from this groups and included to special groups - Durable goods orders excluding transportation and Durable goods orders excluding defense.

This is a valuable indicator telling about consumer confidence in current economic conditions. Durable goods are quite expensive, and determination to buy them shows confidence of citizens in their financial stability and absence of inclination to save money "for a rainy day".

Durable goods orders is the anticipating figure, because long before recession it can show decline of citizens' purchasing power. And in quite the opposite way, confident growth of this indicator is able to signalize that recession switches to economic upraise a few months prior to this change.

Publication of this figure is made each 4^th week of the month (usually on 18^th) at 8.30 a.m Washington time. US Census Bureau of the Department of Commerce is responsible for computation and announcing of this figure.

If published value is above predicted level, US dollar immediately responses by growth against other currencies. High value not only tells that consumers right and here are ready to spend to buy durable goods but it shows that manufacturers realized their goods, received a good profit and are ready to invest it in further production, modernization and to increase wages.