Dodge Momentum Index Recedes 1%

The Dodge Momentum Index, issued by Dodge Construction Network, declined .9% in July to 193.4 (2000=100) from the revised June reading of 195.1. Over the month, the commercial component of the DMI remained relatively flat, ticking down .2%, while the institutional component fell 1.9%.

All commercial sectors pulled back, or remained flat, over the month of July. Hotel planning saw the largest month-over-month decay, marking four months of consecutive decline in the sector. July also saw a deceleration in the number of education and healthcare projects entering planning — the two largest institutional segments. While two sizable public projects entered planning and pushed activity in the sector to double-digit gains, it was not enough to push the institutional portion of the index positive. Year over year, the DMI remains 21% higher than in July 2022. The commercial and institutional components were up 13% and 35%, respectively.

A total of 15 projects valued at $100 million or more entered planning in July. The largest commercial projects to enter planning included the $400-million Kraft Heinz Distribution Center in DeKalb, Illinois and the $190-million PTC warehouse/distribution facility in San Antonio, Florida. The largest institutional projects to enter planning included the $240-million Lexington High School in Lexington, Massachusetts, the $216-million courthouse improvement project in San Luis Obispo, California, and the $200-million Solano Hall of Justice courthouse in Fairfield, California.

The DMI is a monthly measure of the initial report for nonresidential building projects in planning, shown to lead construction spending for nonresidential buildings by a full year.