Dodge Momentum Index Sees Notable April Increase

The Dodge Momentum Index (DMI) increased 6.1% in April from March and 12% year-over-year (y/y), Dodge Construction Network reported on Tuesday. “Over the month, commercial planning improved 12.6% and institutional planning dropped 6.3%.” The index is “a monthly measure of the initial report for nonresidential building projects in planning, shown to lead construction spending for nonresidential buildings by a full year.” The index “saw positive progress in April, alongside a deluge of data center projects that entered the planning stage,” stated Sarah Martin, associate director of forecasting. “Most other categories, however, faced slower growth over the month. Across these industries, it’s likely that owners and developers are grappling with uncertainty around interest rates and labor shortages, thus delaying their decisions to push projects into the planning queue….traditional office and hotel projects continued to face slower momentum. Warehouse planning was basically flat. On the institutional side, education and healthcare planning activity receded again—in part, driven by another month of weak life science and R&D laboratory activity. [Y/y], the DMI was 1% lower than in April 2023. The commercial segment was up 6%..., while the institutional segment was down 15%. ”

 

 

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