Steel Markets
Dodge Momentum Index Soars as Commercial Planning Activity Increases
Written by Sandy Williams
June 8, 2021
The Dodge Momentum Index soared 9.1% to register 178.0 in May due to a brisk increase in commercial planning activity. The May report marks the seventh consecutive gain for the index.
Several large data center, office and warehouse projects entered the planning phase last month resulting in a 13-year high for the commercial component of the Index. Institutional planning was flat in May but remained at levels not seen since 2009, said Dodge Data & Analytics. Compared to May 2020, commercial planning rose 38% and institutional planning 47%. The overall index was 41% higher than a year ago.
Last month, 21 projects valued at $100 million or more entered the planning stage.
“The rising trend in planning activity is a good sign that the economic recovery is starting to spread into the construction sector,” said Dodge. “However, these projects are unlikely to have an impact on construction starts this year. Rising material prices and a continued shortage of skilled labor have led to project delays. On the upside, construction starts are shaping up for a healthy increase in 2022.”
The index, issued by Dodge Data & Analytics, is a monthly measure of the first report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year.
Sandy Williams
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