Capital Goods New Orders Confirm Red-Hot Production Sector

Apr. 27, 2021 4:10 PM ET1 Comment
New Deal Democrat profile picture
New Deal Democrat


  • New orders for durable goods, especially “core” capital goods orders, are a short leading indicator for the economy as a whole.
  • March’s report showed a sector on fire, with core capital goods setting a new record.
  • The improvement went beyond a mere rebound of pent-up demand, or a reflection of a poor comparison period.
  • The upshot is that the production sector of the economy should be extremely strong at least through the summer.

Industrial workers with face masks protected against corona virus discussing about production in factory. People working during COVID-19 pandemic.
Photo by Smederevac/iStock via Getty Images


Durable goods new orders are one of the "official" leading indicators for the economy, giving us a good picture of where the producer side of the economy is likely to be in about 3 months. Yesterday's

This article was written by

New Deal Democrat profile picture
New Deal democrat As a professional who started an individual investor for almost 30 yeas ago, I quickly focused on economic cycles and the order in which they typically proceed. I have been writing about the economy for nearly 15 of those years, developing several alternate systems that include mid-cycle, long leading, short leading, coincident, lagging and long lagging indicators. I also focus particularly on their effects on average working and middle class Americans.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (1)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.