Steel Markets
Dodge Momentum Index Pushes Higher in May
Written by David Schollaert
June 7, 2022
The Dodge Momentum Index moved 7% higher in May, gaining ground on the upward revised reading for the month prior, according to data and analytics from the Dodge Construction Network. The index registered 176.2 in May, up from 165.2 the month prior.
The index measures data about planned nonresidential building projects to track spending in the sector. For May, the institutional component of the Momentum Index rose 9% and the commercial component increased 6%.
May’s increase in the headline index, according to the report, pushed the level of planning above the most recent cyclical high reached in November 2021.
During the month of May, commercial planning was led higher by an increase in office and hotel projects. Institutional planning saw a boost in education and healthcare projects entering planning.
Compared to May 2021, the overall Momentum Index was 17% higher last month. The institutional component was up 8%, and the commercial component was 24% higher on a year-over-year basis.
The report noted that a total of 19 projects with a value of $100 million or more entered planning in May. The leading commercial projects were the $333 million Bitcoin Mining Facility (a large computing building) in Corsicana, Texas, and the $300 million Gun Lake Hotel and Resort in Wayland, Mich. The leading institutional projects were the $250 million Drexel University life sciences building in Philadelphia, Pa., and the $160 million Colorado Research Exchange life sciences campus in Broomfield, Colo.
Nonresidential building projects continue to steadily enter the planning cycle despite higher interest rates and fear of recession, the report said. While higher prices and labor shortages may result in projects reaching ground-breaking later in 2022 or early 2023, they provide hope that the construction sector will be able to withstand a potential economic slowdown fed by higher interest rates.
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
Read more from David SchollaertLatest in Steel Markets
Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.
Sheet market participants say sales still in a slump
Across the US and throughout the steel supply chain, market participants are reporting another painfully quiet week for hot-rolled (HR) coil sales.
CRU: Lower sheet prices have pulled back demand for imports
Domestic sheet prices in the US remained under pressure, limiting interest in imports, while domestic prices for longs products continued to rise.
President Trump intends to set additional steel tariffs
While boarding Airforce One on Friday, US President Donald Trump stated that he would be setting more steel tariffs and putting ~100% tariffs on semiconductors and chips.
USS, government officials give update on Clairton Coke Works incident
U.S. Steel, Allegheny County executive Sara Innamorato, and Pennsylvania Gov. Josh Shapiro clarified details from early reports about the Clairton Coke Works facility explosion just one day earlier.