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
Read more from David SchollaertLatest in Economy
ISM: US manufacturing poised for growth in 2025
“Manufacturers are optimistic,” said Timothy R. Fiore, chair of ISM’s Manufacturing Business Survey Committee.
New York state manufacturing activity stable in December
Following a substantial recovery in November, business activity in New York state’s manufacturing sector held steady in December, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
Ternium chief say Mexico tariffs ‘irrational’
Vedoya said the proposed tariffs are "an irrational measure that would harm both their own industry and ours."
Slowing data center, warehouse planning drives decline in Dodge index
The Dodge Momentum Index (DMI) slid further in November as planning for data centers and warehouses continued to decline.
Beige Book shows some positive economic activity
Still, many businesses noted increased sensitivity to prices and quality among customers.