Infrastructure

Dodge Momentum Index hits 21-month high in August

Written by David Schollaert

September 10, 2024

Commercial planning momentum continues to drive the Dodge Momentum Index (DMI) higher, pushing August up to a 21-month high.

The DMI registered 220.4 last month, 2.9% above July’s revised reading of 214.2, Dodge Construction Network (DCN) reported on Tuesday. This is also a 31% surge over year-ago levels and the best mark since December 2022.

The DMI tracks the value of nonresidential construction projects entering the planning stages. It typically leads construction spending by about 12 months.

“Commercial planning saw another month of broad-based improvements,” said Sarah Martin, associate director of forecasting at Dodge.

Last month’s boost saw most nonresidential sectors grow, driven by expectations that “the Fed’s September rate cut all but finalized,” according to Martin.

The commercial building index was up 1.9% month over month (m/m) in August and up 42% vs. August 2023. While growth was widespread across all segments, the network noted that data centers were still a driving force of growth. Warehouse, hotels, and retail planning have also been a bright spot over the past three months.

Institutional planning jumped 5.7% higher in August from July and 8% vs. year-ago levels.

A total of 30 projects valued at $100 million or more entered planning throughout the month of August, DCN said.

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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