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Dodge: January gain thanks to institutional planning

Written by David Schollaert

February 8, 2024

The Dodge Momentum Index (DMI) was largely unchanged in January, moving up marginally due to improved institutional conditions, according to the latest Dodge Construction Network (DCN) data.

The DMI increased in January to 184.1 from a revised December reading of 183.9, DCN said on Thursday, Feb. 8. That’s just a 0.1% increase vs. the prior month, but 3% below January 2023’s reading.

“Divergent trends between commercial and institutional planning continued in January, nullifying any growth on the overall Momentum Index,” Sarah Martin, associate director of forecasting for DCN, said in a statement.

“Nevertheless, lending standards began to loosen in January and the Fed is expected to begin cutting rates in the back half of the year. With this in mind, momentum should resume in commercial activity throughout 2024 as owners and developers gain confidence in market conditions for 2025,” Martin added.

Education and healthcare planning supported growth in institutional planning, while slower growth in warehouse planning pulled down the commercial side of the Index in January, reported DCN.

The commercial segment saw a 12% decline from year-ago levels, while the institutional segment was up 15% over the same period.

Overall, 15 projects valued at $100 million and up entered planning in January. Three of those projects have a $200 million value or higher, DCN said.

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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