Infrastructure
Dodge Momentum Index hits a 19-month high in July
Written by David Schollaert
August 8, 2024
Commercial planning momentum is heating up across several commercial and institutional segments, driving the Dodge Momentum Index (DMI) higher in July.
The DMI registered 216.3 last month, 7.9% above June’s revised reading of 200.5, Dodge Construction Network (DCN) reported on Wednesday. This is also a 17% surge over year-ago levels and the best mark since December 2022.
The DMI tracks the value of nonresidential construction projects entering the planning stages. It typically leads construction spending by about 12 months.
“While data centers have had an outsized influence on nonresidential planning activity in recent months, more momentum is building across many other major sectors and diversifying the story behind July’s growth,” said Sarah Martin, associate director of forecasting at Dodge.
The increased prospect of Fed rate cut in September and slower inflation was “driving owners and developers to remain optimistic about 2025 market conditions and pushing more projects into the planning queue,” Martin added.
The commercial building index was up 6.8% month over month (m/m) in July and up 35% vs. July 2023. While growth was widespread across all segments, the network noted that data centers were still a driving force of growth. Retail planning, though, has also been steadily accelerating over the past eight months.
Institutional planning jumped 11.1% higher in July from June, with healthcare the primary driver of this month’s expansion. Despite the m/m gain, the segment was down 14% vs. year-ago levels.
A total of 23 projects valued at $100 million or more entered planning throughout the month of June, DCN said.
David Schollaert
Read more from David SchollaertLatest in Infrastructure
Dodge Momentum Index reaches record high in June
The Dodge Momentum Index (DMI) increased again in June, setting a record reading. The surprise result follows three months of little to no growth, according to the latest data released by Dodge Construction Network. Both institutional and commercial projects accelerated in June, further improving the nonresidential construction market. The May DMI rose to 225.1, a […]
SMU Community Chat: Construction at risk from tariffs, immigration policy, federal cuts
“Contractors say that they're still busy, but their order books have gotten a lot softer or a lot more uncertain,” said Ken Simonson, chief economist for The Associated General Contractors of America.
House committee blocks GOP budget proposal
The budget proposal has big implications for steel and manufacturing.
Construction spending drops marginally in January
Construction spending edged down slightly in January, slipping for the first time in four months. The US Census Bureau estimated spending at a seasonally adjusted annual rate of $2,196 billion in January, down 0.2% from December’s downward revised rate. The January figure is 3.3% higher than a year ago. January’s result, despite the slight erosion, […]
Buy America waivers end for federal highway projects
All steel, iron, and manufactured products used in federally funded highway projects must soon be made in America. The Department of Transportation announced all waivers to the Buy America requirements for federal infrastructure projects will soon be terminated. Effective March 17, the DOT’s Federal Highway Administration will implement a final rule that will end its […]