The index reflects the change in new orders for durable goods, excluding transportation, compared to the previous month, seasonally adjusted.New orders are messages of intent to make a purchase for immediate or future delivery, supported by legal documents. Order data is not collected in industries for which, in most cases, shipments are immediate. Durable goods are goods that have a service life of more than three years.
The index is based on a study of manufacturing enterprises from 89 industries with an annual turnover of $ 500 million or more. The indicator covers about 60% of supplies to the United States. This indicator is used by the Bureau of Economic Analysis to estimate GDP and other data series, federal authorities in monetary and fiscal policy.