Dodge Momentum Index Down Slightly In July

August 18, 2023

Dodge Momentum Index Down Slightly In July

The Dodge Momentum Index decreased by 0.9% in July moving to 193.4. This was down from the revised June score of 195.1. Both commercial and institutional planning were down slightly with -0.2 and -1.9% drops respectively.

Sarah Martin, associate director of forecasting for Dodge Construction Network, stated “While both segments of the Index fell this month, underlying project data points to divergent trends in the nonresidential sector.”

Martin continued, “In comparison to January 2023, commercial planning activity is down 10% through July, while institutional planning is up 16%. Distinctly large institutional projects entering planning in May temporarily inflated month-to-month trends, but activity has since ticked down. As we progress through the remainder of 2023, weaker commercial activity, resulting from tighter lending standards and higher interest rates, will counter sturdier institutional activity, bolstered by public funding and less sensitivity to interest rates. Dodge attributed the institutional losses to a decrease in education and healthcare activity. The increase in commercial planning was centered around data center and hotel projects.

Year over year, The DMI was 21% higher than July of last year with 13% and 35% higher scores for the commercial and institutional components respectively.

Sources: For more information about the Dodge Momentum Index, visit the Dodge Data & Analytics website.