Steel Markets
Dodge Momentum Index Drops Again in May
Written by Becca Moczygemba
June 7, 2023
The Dodge Momentum Index (DMI) fell for the third consecutive month in May as weakness in commercial planning persists, according to the latest data from the Dodge Construction Network (DCN). The index reading is at its lowest level in nine months.
The DMI dropped 2% to 180.5 in May from the revised April reading of 184.1 but was still 11% higher than the same time last year.
Slowing activity in office and hotel planning negatively impacted commercial planning, which fell by 6.1%. Conversely, institutional planning grew by 5.6% thanks to sustained growth in education, health, and amusement projects. Compared to last year, commercial components were up 7% while institutional components were up 18%.
“Institutional planning steadily improved over the month as research and development laboratories and hospital projects steadily entered planning,” commented DCN’s associate director of forecasting Sarah Martin.
“Sustained elevation in the federal funds rate and tighter lending standards will likely constrain growth in the DMI over the second half of 2023; however the index remains above the historical average. This paints an optimistic landscape for non-residential construction in mid-2024, as the economy recovers and the Fed begins to pull back rates,” she added.
Thirty projects valued at over $100 million were entered into planning in May, DCN said.
Dodge is the leading index for commercial real estate, using the data of planned nonresidential building projects to track spending in the important steel consuming sector for the next 12 months. An interactive history of the DMI is available on our website.
By Becca Moczygemba, becca@steelmarketupdate.com
Becca Moczygemba
Read more from Becca MoczygembaLatest in Steel Markets
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.
GrafTech continues to bleed red due to weak demand
GrafTech is reporting weak near-term demand for graphite electrodes as economic uncertainty constrains steel production globally.
Worldsteel projects steel demand to grow 1.7% this year
Global steel demand will reach roughly 1.793 million metric tons (1.976 million short tons) this year, an increase of 1.7% over 2023, the World Steel Association (worldsteel) said in its updated Short Range Outlook report. The gain will come after a 0.5% contraction in steel demand in 2023. Demand is forecasted to increase another 1.2% […]
February construction spending steady, shows solid y/y improvement
US construction spending in February was mostly steady from January but showed significant gains from last year.
February imports ease from seven-month high
After reaching a seven-month high in January, steel imports fell back 3% in February, according to preliminary Census data released earlier this week.