Macroeconomic indicators are indicators that reflect statistical data on the economy of a particular country, the state of various economic spheres of the state (the labor market, real estate, manufacturing and trade sectors, etc.), as well as the world economy as a whole.
Usually macroeconomic indicators are divided into several types depending on their importance for the exchange movement, because the market volatility at the time of publication of data depends on them.
Durable Goods Orders is one of the most important US economic indicators published in the country. Durable goods are those products that have a life span of more than 3 years (e.g. cars, computers, household appliances, airplanes, etc.) and account for the majority of corporate spending.
Since durable goods, i.e. those that can be used for more than 3 years, are often expensive, interest in them or its absence indicates the willingness of consumers to spend large sums of money for a long time, and thus trust in the state economy.
Many sectors depend on the volume of orders for durable goods, especially heavy industry. Thus, the indicator has an important impact on employment, industrial production and profits of enterprises, while being a sign of confidence of large businesses in the economy.
The indicator is calculated by interviewing 5000 manufacturers about the number of orders for durable goods, i.e. cars, furniture, sanitary ware, electrical appliances for home, etc. A high reading is seen as an indicator of increasing activity among manufacturers. If this indicator turns out to be quite high, you should most often expect the US dollar to grow in Forex.
Durable Goods Orders is one of the 10 components of the index that is a leading indicator for the future of the US economy. All this has led to the importance of the index, which allows making assumptions about the state of the economy in advance.
In addition to orders for durable goods, the indicator is cleared from the influence of transport. The fact that the category of transport falls into the category of aircraft – a highly variable component, which makes it difficult to assess the economic situation at a moment. It is also useful to exclude the impact of expenditures on the defense sector, as investors are primarily concerned about the situation in private business. Base orders for durable goods reflect changes in total new orders for durable goods, excluding transport.
For example, on October 25, orders for durable goods rose by 0.8%, while waiting for a 1.3% reduction. Base orders have also increased. As a result, the dollar rose by 70 points against the euro.
Exchange speculators and Forex traders, who actively use fundamental analysis in trading, monitor the values of the most important indicators of macroeconomic development and on their basis predict the dynamics of their assets. This is a difficult process that requires knowledge, but it is available to everyone interested, because macroeconomic indicators of the economy are published in strictly allocated time in economic calendars and they are actively discussed in the market.