products used by businesses or consumers that are expected to last at least three years or more. Examples would generally be big-ticket items such as automobiles and major office and home appliances. Sales of durable goods are usually tied closer to interest rates than are the sales of non-durable goods. Sales of Durable goods are reported by the Department of Commerce in its Gross Domestic Product - ( GDP) reports.
As contrasted with non-durables, durable goods are products which are designed to last for more than one year. This includes things like automobiles, dishwashers, furniture and television sets. Non-durables include things like food, beverages, drugs, cigarettes and the like.
products used by consumers or businesses that are expected to last three or more years. These goods tend to be big-ticket items (for example, automobiles and washing machines). Durable goods sales are generally interest-rate sensitive and correlate with the overall level of economic activity.
Manufactured items generally considered to have a normal life expectancy of three years of more. Includes 2-digit SIC codes 24, 25, 32-39. Automobiles, furniture, household appliances, and mobile homes are common examples.
Measures new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods. A durable good is defined as a good that lasts an extended period of time (over three years) during which its services are extended.
Orders for durable goods -- products expected to last more than three years, such as business machinery and major household appliances -- are a leading indicator because company orders respond to changes in demand. Retail sales of durable goods to consumers are another leading indicator. Because such purchases can be put off during bad times, any increase reflects a changing trend in consumer spending.