Steel Markets
Dodge Momentum Index Inches Higher on Commercial Planning
Written by Sandy Williams
September 8, 2020
The Dodge Momentum Index increased for a second consecutive month, climbing 1.8 percent in August to 126.5. The commercial component of the index increased 3.3 percent while the institutional component dipped 1.2 percent lower.
The index is a monthly measure of the first report for nonresidential building projects in planning, which has been shown to lead construction spending by a full year.
“The August increase in the overall Momentum Index is the second consecutive rise and a further sign that the construction sector continues to post a modest recovery following the large declines in April and June. This recovery, though, is uneven,” said Dodge Data & Analytics. “The commercial component has risen 9 percent from its June low and is just 13 percent below its 2018 peak fueled by increased planning activity for warehouse and office projects. The institutional component, however, has declined for five consecutive months and has yet to hit bottom. The institutional component is now 34 percent below its recent peak. “
A decline in state and local government revenue has led to budget cuts and a pullback on new public projects. Cancellation and delays of education building projects have put “significant downward pressure on the institutional component of the Momentum Index,” added Dodge.
Below is a graph showing the history of the Dodge Momentum Index You will need to view the graph on our website to use its interactive features; you can do so by clicking here. If you need assistance logging in to or navigating the website, please contact us at info@SteelMarketUpdate.com.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
USW cheers Evraz NA agreement with Atlas Holdings
The United Steelworkers (USW) labor union celebrated recent news of the signed agreement between Atlas Holdings and Evraz NA in which the Connecticut-based private equity company said it plans to acquire North America’s Evraz facilities.
Steel buyer spirits tempered by soft spot market conditions
Steel sheet buyers report feeling bogged down by the ongoing stresses of stagnant demand, news fatigue, tariff negotiations or implementation timelines, and persistent macroeconomic uncertainty.
Hot-rolled coil buyers continue seeking certainty
Steel market participants contend that buyers will remain in “wait-and-see" mode until some market stability is restored.
Latin American steel advocates warn on cheap import flood
Subsidized Chinese steel imports and cheap steel products from Association of Southeast Asian Nations (ASEAN) entering Latin American (LATAM) are threatening the region's steel market.
CRU: Steel prices fall amid global demand weakness
The forceful headwinds bearing down on steel markets across the globe have created demand challenges and sent prices southward. The US, however, challenged the global trend.