Economy
Dodge Momentum Index keeps rising in May
Written by Ethan Bernard
June 7, 2024
Interest rate stability and growing owner and developer confidence helped push the Dodge Momentum Index (DMI) higher in May.
The DMI registered 179.0 last month, 2.7% above the April reading of 174.3, Dodge Construction Network (DCN) reported on Friday. But this is 7% lower than year-ago levels.
The DMI tracks the value of nonresidential construction projects entering the planning stages. It typically leads construction spending by about 12 months.
“Owners and developers are gaining confidence in 2025 market conditions, alongside more stable and predictable interest rates – spurring stronger commercial activity over the month,” Sarah Martin, associate director of forecasting at Dodge, said in a statement.
The commercial building index was up 5.5% month over month in May, supported by data center planning, according to the network.
However, Martin said after last year’s growth, “institutional planning is decelerating, as high material costs, labor shortages, and elevated interest rates seep into planning decisions.”
Institutional building fell 3.4% in May from April, as healthcare and education planning activity slowed.
Still, Martin noted that the overall DMI remains 40% higher than May 2019 levels, which indicates a steady pipeline of construction projects will be ready to break ground through mid-2025.
A total of 19 projects valued at $100 million or more entered planning throughout the month of May, DCN said.
Ethan Bernard
Read more from Ethan BernardLatest in Economy
January energy market update
In this Premium analysis we cover North American oil and natural gas prices, drilling rig activity, and crude oil stock levels. Trends in energy prices and active rig counts are leading demand indicators for oil country tubular goods (OCTG), line pipe and other steel products.
New York state manufacturing fell in January
“Price increases, while subdued, picked up,” Richard Deitz, Economic Research Advisor at the New York Fed. “Firms grew more optimistic that conditions would improve in the months ahead.”
Beige Book shows mixed economic trends, manufacturing challenges, tariff concerns
Economic activity across the US experienced slight to moderate growth at the end of 2024, while manufacturing activity showed a slight decline
Contractors concerned about tariffs, immigration in 2025: AGC survey
AGC said Trump should be “sparing” in imposing new tariffs and exclude products needed for domestic manufacturing, energy and infrastructure.
Dodge Momentum rebounds in December
Improved growth in data center planning and warehousing projects helped the Dodge Momentum Index (DMI) rebound in December.