Durable Goods Orders Rise More Than Expected in February

New orders for manufactured durable goods rose in February, coming in at $277.93B. This is a 1.4% increase from the previous month and more than the expected 1.2% growth. The series is up 2.6% year-over-year (YoY).

New orders for manufactured durable goods in February, up following two consecutive monthly decreases, increased $3.7 billion or 1.4 percent to $277.9 billion, the U.S. Census Bureau announced today. This followed a 6.9 percent January decrease. Excluding transportation, new orders increased 0.5 percent. Excluding defense, new orders increased 2.2 percent. Transportation equipment, also up following two consecutive monthly decreases, led the increase, $2.9 billion or 3.3 percent to $90.4 billion.

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Durable Goods

Durable goods refers to tangible products that can be stored or inventoried and that have an average life of at least three years. Durable goods are typically expensive and therefore tend to be purchased when there is confidence in the economy. New orders for durable goods are a leading indicator, meaning when purchases increase it typically hints at an improvement to the economy. On the flip side, when the new orders trend down it is indicating a lack of confidence in the economy.