Economy

Dodge Momentum Index slips lower in March

Written by Brett Linton

April 5, 2024

The Dodge Momentum Index (DMI) fell again in March, marking one of the lowest index readings of the past two years according to Dodge Construction Network data released Friday.

The DMI fell 8.6% last month to 164.0, down from February’s revised reading of 179.5 and 12% lower than the same month one year prior.

“In 2023, commercial planning decreased while institutional planning notably improved,” said Sarah Martin, associate director of forecasting for Dodge. “While strong market fundamentals should support institutional planning this year, this side of the Index is more at risk for a substantive correction after last year’s growth.”

Martin noted that slower growth on the commercial side pulled down that portion of the index again this month. The commercial segment was down 14% from a year earlier, while the institutional segment fell 10%.

Dodge reported that a total of 14 projects valued at $100 million or more entered planning in March, down from 17 in February.

Dodge is the leading index for commercial real estate. It uses the data of planned nonresidential building projects to track spending in this important steel-consuming sector for the next 12 months. An interactive history of the DMI is available on our website.

Brett Linton

Brett Linton is a senior analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.

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