Steel Markets
Dodge Momentum Index Gains Ground in April
Written by David Schollaert
May 5, 2022
The Dodge Momentum Index moved 6% higher in April, rebounding following lower revised reading for the month prior, according to data and analytics from the Dodge Construction Network. The index registered 164.8 last month, up from March’s downward revised reading of 155.
In April, planning for commercial projects drove the index’s overall reading upward, expanding by 9% while institutional planning edged higher by 2%. With the gain in April, the headline Index was just 5% shy of the all-time high set in the fall of 2021.
The main impetus behind the rising trend is the commercial sector, which has been driven by a growing number of data center, warehouse and hotel projects entering the planning queue. Dodge said.
The institutional component has made moderate improvements as well over the same period, driven by the added education, healthcare, and recreation projects beginning the planning process.
Compared to April 2021, the overall Momentum Index was 17% higher last month. The institutional component was up 22%, and the commercial component was 15% higher on a year-over-year basis.
The report noted that a total of 25 projects with a value of $100 million or more entered planning in April. The leading commercial projects were the $208 million Colo 1 data center in Ashburn, Va., and the $150 million QTS data center in Fort Worth, Texas. The leading institutional projects were the $300 million Banner Hospital in Buckeye, Ariz., and the $287 million IU Health Saxony Hospital in Fishers, Minn.
The planning backlog for nonresidential building projects continues to fill, which should provide optimism that construction activity ought to remain solid in the months to come. Rising interest rates and the continued increase in material prices, however, will moderate any rising trend throughout the remainder of 2022., the report said.
By David Schollaert, David@SteelMarketUpdate.com
An interactive history of the Dodge Momentum Index is available on our website. If you need assistance logging into or navigating the website, please contact us at info@SteelMarketUpdate.com.
David Schollaert
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