Economy
Dodge Momentum Index keeps rising in May
Written by Ethan Bernard
June 7, 2024
Interest rate stability and growing owner and developer confidence helped push the Dodge Momentum Index (DMI) higher in May.
The DMI registered 179.0 last month, 2.7% above the April reading of 174.3, Dodge Construction Network (DCN) reported on Friday. But this is 7% lower than year-ago levels.
The DMI tracks the value of nonresidential construction projects entering the planning stages. It typically leads construction spending by about 12 months.
“Owners and developers are gaining confidence in 2025 market conditions, alongside more stable and predictable interest rates – spurring stronger commercial activity over the month,” Sarah Martin, associate director of forecasting at Dodge, said in a statement.
The commercial building index was up 5.5% month over month in May, supported by data center planning, according to the network.
However, Martin said after last year’s growth, “institutional planning is decelerating, as high material costs, labor shortages, and elevated interest rates seep into planning decisions.”
Institutional building fell 3.4% in May from April, as healthcare and education planning activity slowed.
Still, Martin noted that the overall DMI remains 40% higher than May 2019 levels, which indicates a steady pipeline of construction projects will be ready to break ground through mid-2025.
A total of 19 projects valued at $100 million or more entered planning throughout the month of May, DCN said.
Ethan Bernard
Read more from Ethan BernardLatest in Economy
Steel groups welcome passage of budget bill
Steel trade groups praised the passage of the Big Beautiful Bill (BBB) in Congress on Thursday.
Industry groups praise Senate for passing tax and budget bill
The Steel Manufacturers Association and the American Iron and Steel Institute applauded the tax provisions included in the Senate's tax and budget reconciliation bill.
Chicago PMI dips 0.1 points in June
The Chicago Purchasing Managers Index (PMI) slipped 0.1 points to 40.4 points, in June.
Multi-family pullback drives housing starts to 5-year low in May
US housing starts tumbled in May to a five-year low, according to figures recently released by the US Census Bureau.
Architecture firms still struggling, ABI data shows
Architecture firms reported a modest improvement in billings through May, yet business conditions remained soft, according to the latest Architecture Billings Index (ABI) release from the American Institute of Architects (AIA) and Deltek.