Economy
Dodge Momentum Index Improved in September
Written by David Schollaert
October 10, 2023
The Dodge Momentum Index (DMI) edged up in September, driven by a slight increase in planning despite tighter lending standards, according to the latest Dodge Construction Network (DCN) data.
The DMI improved 3% to 182.5 in September from August’s revised reading, and was 5% higher than the same time last year.
“Solid demand for data centers, life science labs, and hospitals supported the uptick in nonresidential planning activity last month,” said Sarah Martin, DCN’s associate director of forecasting. “While month-to-month trends can be volatile, year-to-date trends show an overall decrease in commercial planning, offset by more institutional projects entering the queue.”
“Steady planning activity should follow if financial conditions improve in early 2024,” Martin added.
The two largest institutional segments, healthcare and education, saw stronger planning activity in September, while a drop in commercial project planning resulted from weaker office planning, the report said.
Month over month, the commercial component of the DMI dropped 1%, while the institutional component fell 9%. The commercial component was 12% lower year over year, while the institutional component was up 12% over the same period.
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.
David Schollaert
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