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
Read more from Sandy WilliamsLatest in Steel Markets
Dodge Momentum Index rebounds on surge of data center planning
A surge in data center project planning pushed the Dodge Momentum Index (DMI), a leading indicator for the nonresidential construction sector, higher in April.
US construction spending levels off in March
Construction spending in the US in March was basically steady from the previous month but showed notable year-on-year (y/y) growth.
CRU: Brazil proposes quotas on steel imports, with tariff back up
Brazil’s chamber of foreign trade, Camex, has approved quotas on imports of 11 steel products and a 25% levy on shipments 30% above a product’s average import volume between 2020 and 2022.
Leading nonres indicator falls to more than three-year low
An important economic indicator for the nonresidential construction industry declined in March to its lowest point in more than three years.
Active rig counts slip in US and Canada
The number of active rigs in the US is now at the lowest level seen in over two years, while Canadian rigs have fallen to a four-month low.