The purchasing of durable goods that are manufactured by domestic companies are tracked monthly. Typically, durable goods are expensive and can be expected to last for at least three years. Anything from a cell phone (if there are any made in the USA?) to a dining room table to an airplane is considered a durable good. Because durable goods are longer lasting, individuals and companies don’t buy them frequently and their acquisition can be seen as investments for the future. Higher order levels indicate higher levels of economic activity, and vice versa.
Durable Goods orders had risen 3.3% last month and were subsequently expected to contract by 1.1% this month. However, the actual reading showed another 0.9% gain. This report renews optimism in our economy and staves off the mounting recession fears for a few more days. The showing of confident investment into our futures is also putting additional upward pressure on interest rates.
