United States Durable Goods Orders ex Transp MoM

Info

History

Chart

Impact:

Medium

Latest Release:

Surprise:

0.3%

USD

Actual:

0.5%

Forecast: 0.2%

Previous/Revision:

0.9%

Period: Dec 2016

What Does It Measure?

United States Durable Goods Orders excluding Transportation (ex Transp) MoM measures the month-over-month change in new orders placed with manufacturers for durable goods, excluding orders for transportation equipment. This indicator focuses on consumer and business spending trends, assessing the health of the manufacturing sector and overall economic strength.

Frequency

This economic indicator is released monthly, typically on the last business day of the month following the reporting period, and provides preliminary estimates that are subject to revision in later reports.

Why Do Traders Care?

Traders monitor Durable Goods Orders ex Transp MoM closely as it reflects the demand for durable goods, which can impact economic growth forecasts and influence market sentiment. Stronger-than-expected orders are generally bullish for the U.S. dollar and equities, while weaker readings may dampen confidence and lead to bearish trends.

What Is It Derived From?

Durable Goods Orders ex Transp MoM is calculated based on data collected from various manufacturers regarding new orders for products expected to last more than three years, utilizing comprehensive surveys that categorize these orders and exclude transportation equipment to provide a clearer view of manufacturing demand.

Description

The preliminary report provides early insights based on manufacturers' responses for the current month, highlighting immediate demand trends. The final figure, released later, incorporates adjustments based on more complete data, with financial markets often displaying sensitivity towards the preliminary outcomes, as they reflect timely economic conditions.

Additional Notes

This indicator is considered a leading economic measure, as it anticipates future production levels and spending patterns. Comparatively, it provides valuable insights when viewed alongside other economic indicators such as GDP and business investment trends, serving as a barometer for overall economic health.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for USD, Bullish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise
Dec 22, 2016		0.5%	0.2%	0.9%	0.3%