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    Analysis

    September 7, 2021

    Dodge Momentum Index Slips Again in August as Construction Spending Slows

    Written by David Schollaert

    The Dodge Momentum Index declined for a third straight month in August, a stark contrast from the six consecutive months of gains seen since the close of 2020. The downturn suggests strong headwinds from supply-chain limitations, rising raw material prices, and labor shortages that are plaguing the nonresidential construction sector, especially new projects.

    constructionThe index now stands at 148.7, down 3% from the revised July reading of 154.0, according to the latest Dodge Data & Analytics release. Both components of the index declined again in August, with commercial planning down 3% to 178.5 and institutional planning down 6% to 111.9. August’s measure is now off 14% from the most recent high in May, while the commercial component is down 10% and the institutional component is 22% lower over the same period.

    David Schollaert

    David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.

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