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.

RELATED TERMS
  1. Durables

    A category of consumer goods, durables are products that do not ...
  2. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  3. Capital Goods Sector

    A category of stocks related to the manufacture or distribution ...
  4. Bracketed Sell Order

    A sell order on a short sale that is accompanied (or "bracketed") ...
  5. Transportation Sector

    A category of stocks relating to the transportation of goods ...
  6. Away From The Market

    An expression that is used when the bid on a limit order is lower ...
Related Articles
  1. Retirement

    Economic Indicators: Factory Orders Report

    By Ryan Barnes Release Date: First week of the month Release Time: 8:30am Eastern Standard Time Coverage: Two months ...
  2. Brokers

    Explaining Market Orders

    A market order is the most common order used to purchase a financial security.
  3. Investing

    How To Start Trading: Order Types

    The types of orders you use can have a large effect on your trading performance, so understanding the different order types is important to your success.
  4. Investing News

    Manufacturing Is Suffering, Consumers Don't Care

    The recent divergence between consumer sentiment and the manufacturing sector's health has continued, with a flurry of data releases Thursday highlighting this rift in the American economy.
  5. Active Trading Fundamentals

    The Basics Of Trading A Stock

    Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
  6. Economics

    What are Consumer Goods?

    Products that are purchased for consumption by the average consumer. Clothing, food, automobiles and jewelry are all examples of consumer goods
  7. Online Stock Traders

    Online stock traders place buy/sell orders for financial securities and/or currencies with the use of a brokerage's Internet-based proprietary trading platforms. The use of online trading ...
  8. Economics

    Economic Indicators: Reading Between the Lines

    On the surface, economic indicators are sending mixed signals, but what's brewing beneath the surface?
  9. Active Trading Fundamentals

    Which Order To Use? Stop-Loss Or Stop-Limit Orders

    Stop-loss and stop-limit orders can provide different types of protection for investors seeking to lock in profits or limit losses. Investors need to know how each type of order works to know ...
  10. Investing News

    Does the Empire State Index Signal a Recession?

    This morning, the New York Federal Reserve Bank reported the worst numbers in six years for its August 2015 Empire State Manufacturing Survey, indicating not only a potential economic slowdown ...
RELATED FAQS
  1. How are industrial goods different from consumer goods?

    Understand the difference between industrial goods and consumer goods, and learn the different types of industrial goods ... Read Answer >>
  2. What's the difference between a market order and a limit order?

    Buy and sell trades with market orders at the present stock price and execute limit orders if the stock price falls within ... Read Answer >>
  3. How do I place a limit order online?

    Learn how a limit order is placed, the types of stocks it is most useful for and the specifications placed with it to suit ... Read Answer >>
  4. Why do limit orders cost more than market orders?

    Learn the difference between a market order and a limit order, and why a trader placing a limit order pays higher fees than ... Read Answer >>
  5. What are the advantages of a limit order over a market order?

    Understand the functional differences between a limit order and a market order and the respective advantages and disadvantages ... Read Answer >>
  6. How do I set a strike price in foreign exchange trading?

    Learn about the different order types foreign exchange traders can use to manage positions at certain strike prices and how ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center