This last chart is an overlay of Core Capital Goods on the larger series. This takes a step back in the durable goods process to show Manufacturers’ New Orders for Nondefense Capital Goods Excluding Aircraft.
In theory the durable goods orders series should be one of the more important indicators of the economy’s health. However, its volatility and susceptibility to major revisions suggest caution in taking the data for any particular month too seriously.
This article is brought to you courtesy of Doug Short from Advisor Perspectives.