Core Durable Goods Orders


DEFINITION of 'Core Durable Goods Orders'

New orders for U.S. core durable goods, which are the total durable goods orders excluding transportation equipment. The new orders numbers are closely followed by market participants as they provide indications on current economic conditions as well as future production commitments in the manufacturing sector.

The new orders data is collated by the U.S. Census Bureau in its monthly manufacturers' shipments, inventories and orders (M3) survey, which covers manufacturing establishments with $500 million or more in annual shipments.

BREAKING DOWN 'Core Durable Goods Orders'

Durable goods are goods that do not wear out quickly or have a lifespan of more than three years, and include a wide range of items including computer equipment and industrial machinery, and trains, planes and automobiles.

However, transportation equipment is specifically excluded from core durable goods orders because of the high value of aircraft and other transportation equipment. An influx of large orders in one month can skew the monthly numbers and make it difficult to ascertain the underlying trend.

  1. Durable Goods Orders

    An economic indicator released monthly by the Bureau of Census ...
  2. Transportation Sector

    A category of stocks relating to the transportation of goods ...
  3. Capital Goods Sector

    A category of stocks related to the manufacture or distribution ...
  4. Durables

    A category of consumer goods, durables are products that do not ...
  5. Bureau of Census

    A division of the federal government of the United States Bureau ...
  6. Equilibrium

    The state in which market supply and demand balance each other ...
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