by calculated risk 2024/11/10 09:58:00 AM
From Dodge Data Analytics: Dodge Momentum Index falls 5% in October
The Dodge Momentum Index (DMI), published by Dodge Construction Network, is 5.3% decrease in October The September revised value was 208.2 to 197.2 (2000 = 100). For the month as a whole, commercial plans were down 6.7% and institutional plans were down 2.0%.
“In addition to normalization in data center planning, a slight setback in the number of planned projects in several other non-residential sectors also contributed to the decline in the Dodge Momentum Index in October,” Dodge Construction Network forecasts. said Sarah Martin, Associate Director. “In any case, owners and developers remain confident in market conditions next year, and plans remain poised to spur increased construction activity in 2025 following significant rate cuts by the Fed.” There is.”
Apart from hotel planning, most commercial categories faced declines throughout October, but hotel planning continued to gain momentum. On the institutional side, growth in education and public planning activities was offset by weaker activity in health care, recreation, and religious projects. this month, DMI increased by 13% compared to October 2023. The commercial sector grew 18% year over year, and the institutional sector grew 3% over the same period. The data center impact on DMI this year was significant. Excluding all data center projects from January through October, commercial plans are down 4% from prior-year levels and overall DMI is down 2%.
…
The DMI measures the value of planned non-residential construction projects each month and has been shown to lead non-residential construction spending during the year.
Emphasis added
Click on the graph to see a larger image.
This graph shows the Dodge Momentum Index since 2002. The index for October was 197.2, down from 208.2 the previous month.
According to Dodge, the index “leads nonresidential building construction spending for the year.” The index suggests a slowdown in early 2025, but a recovery in mid-2025.
Commercial construction is typically a lagging economic indicator.
