New Durable Goods Data Paints The Picture: The US Economy Is Slowing

Stéphane Renevier

2 months ago1:46 min

New Durable Goods Data Paints The Picture: The US Economy Is Slowing

New orders for durable goods tapered off slightly in August, confirming worries that the US economy is slowing.

What are durable goods orders and why do they matter?

  • Durable goods are products that are expected to last at least three years: bigger-ticket items, like appliances, computers, cars, and even commercial airplanes. Non-durable goods are things like drinks, toothpaste, and cigarettes.
  • The monthly data, which was released Tuesday, tracks how many new orders for durable goods were made from US companies in a given month. When companies order a lot of durable goods, it shows they expect strong consumer demand for them. This is why durable goods orders are often seen as a leading indicator of the broader economy: when they’re improving, consumer spending is likely to be s

Limited introductory offer

Subscribe Now 50% Off

Get full access to daily stories, insights, deep-dives, interviews, podcasts, and more

Have an account? Log in