Durable Goods Orders: Economic Impact in Australia (2025 Guide)

Durable goods orders may not grab headlines like interest rates or inflation, but they’re a crucial pulse-check on Australia’s economic momentum. In 2025, as global supply chains stabilise and local manufacturers ramp up investment, tracking these orders provides deep insights into business confidence and future growth.

What Are Durable Goods Orders?

Durable goods are items expected to last at least three years—think cars, washing machines, or industrial machinery. When businesses or consumers order these goods, it signals optimism about the future. In Australia, data on durable goods orders comes primarily from the Australian Bureau of Statistics (ABS), which tracks manufacturing activity and business investment intentions.

• Examples: Mining equipment for WA’s resources sector, solar panel systems for households, commercial vehicles for logistics firms.

• Why it matters: Large orders often precede job creation, supplier contracts, and capital flows throughout the economy.

Globally, durable goods orders are watched closely by central banks and investors. In Australia, they influence RBA policy decisions and can move markets, especially as we navigate the shifting sands of 2025’s economy.

2025 Trends: What the Latest Data Reveals

This year, several factors are shaping Australia’s durable goods landscape:

• Manufacturing Rebound: After two years of supply chain bottlenecks, domestic manufacturers are reporting higher order volumes for construction machinery, electric vehicles, and renewable energy infrastructure.

• Government Investment: The Federal Government’s 2025 budget has earmarked $2.4 billion for advanced manufacturing and clean energy equipment, spurring demand for local and imported durable goods.

• Consumer Shifts: With interest rates stabilising in early 2025, households are showing renewed appetite for big-ticket items like appliances and vehicles, especially those with green credentials.

According to the ABS’s March 2025 release, new orders for Australian-made durable goods rose 4.1% quarter-on-quarter, led by transport equipment and electrical machinery. Importantly, businesses in NSW and Victoria reported the strongest growth, benefiting from infrastructure upgrades and commercial property redevelopment.

Why Investors and Business Owners Should Watch Durable Goods Orders

Durable goods orders are more than just a manufacturing metric—they’re a leading indicator for:

• Business Confidence: Rising orders suggest companies are willing to invest, hire, and expand operations.

• Supply Chain Health: Persistent order growth points to improved logistics and supplier reliability—crucial after recent global disruptions.

• Sector Opportunities: Sectors seeing robust orders (e.g., green tech, construction equipment) may offer investment opportunities or signal where new jobs will emerge.

For example, the 2025 surge in orders for battery storage units and grid infrastructure is prompting ASX-listed companies in the renewables sector to announce expansion plans and capital raisings. Likewise, logistics firms are placing bulk orders for fuel-efficient trucks, anticipating continued growth in e-commerce and freight demand.

How Durable Goods Orders Influence Economic Policy

The Reserve Bank of Australia (RBA) and Treasury monitor durable goods orders to gauge whether the economy is overheating or losing steam. In 2025, steady growth in orders has supported the RBA’s decision to hold rates steady at 3.1%, aiming to balance inflation risks with the need for ongoing recovery.

Policymakers also use this data to fine-tune industry grants, export incentives, and training programs. The new “Modern Manufacturing Initiative” announced in the 2025 budget, for instance, was shaped in part by strong order books in advanced manufacturing and clean energy tech.

Looking Ahead: What to Watch for in the Second Half of 2025

While the outlook is positive, several factors could impact future durable goods orders:

• Global Demand: Export-oriented manufacturers remain sensitive to shifts in China, the US, and Europe. A slowdown abroad could dampen orders at home.

• Technology Upgrades: Businesses are accelerating investment in automation and AI-driven machinery, which could drive another wave of durable goods orders in late 2025.

• Policy Tweaks: Any changes to instant asset write-off rules or investment allowances in the October mini-budget could influence short-term order patterns.

For business owners, staying alert to these trends helps with inventory planning, capital allocation, and workforce management. For investors, durable goods data is a crucial input into sector strategies and market timing.