Economy

Dodge Momentum Index inches down in November

Written by David Schollaert

December 7, 2023

The Dodge Momentum Index (DMI) slipped in November due to slightly weaker commercial and institutional activity, according to the latest Dodge Construction Network (DCN) data.

The DMI declined 1% to 179.2 in November from October’s revised reading of 181.7. November’s reading is 14% lower than the same time last year.

“While both portions of the Momentum Index saw slower momentum in planning, overall levels remain steady and will support construction spending in 2024 and 2025,” Sarah Martin, DCN’s associate director of forecasting, said in a statement.

“Nonresidential planning activity will remain constrained from stronger growth amidst ongoing labor and construction cost challenges,” she added.

All commercial segments except data centers saw declines in November. Improved momentum in healthcare and public projects on the institutional side was offset by ongoing weakness in education planning, the report said.

Month over month, the commercial segment of the DMI fell 1.4%, while the institutional component fell 1.5%. Year over year, the commercial portion was down 20%, while the institutional area rose 2%.

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

David Schollaert is a senior analyst for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.

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