Economic Indicator: Factory Orders

What are factory orders?

The U.S. Census Bureau reports durable and non-durable new factory orders monthly, one or two weeks following the durable goods orders report. The factory orders report totals the dollar amount of all U.S. manufacturing orders, shipments, unfilled orders, and inventories. Billions of dollars of investment by industry group are reported in total and in percentage versus prior months and year over year comparisons. Durable goods include non-perishable manufactured items such as furniture, equipment, cars and other items that can be inventoried for more than three years.  Non-durable goods include consumer staples such as food.  As an economic indicator, durable goods may fluctuate with consumer demand and may indicate growth of a certain industry or sector of the economy. Investors rely on durable good orders as a leading indicator of consumer spending, growth and opportunity.