Dodge Momentum Index Lower in August

September 14, 2022

Dodge Momentum Index Lower In August

The Dodge Momentum Index dipped 1.2% in August moving to 171.9. This was down from the revised July score of 174.0. The commercial planning index gained 1%, while the institutional component dropped 5.6%.

Dodge Data and Analytics cited an increase in hotel projects leading the commercial gain, while a decrease in healthcare projects brought the institutional component down.

“In spite of weak institutional planning activity, the Momentum Index remained elevated in August, just a notch below July’s 14-year high. This indicates continued confidence from owners and developers that nonresidential building projects will be realized in the coming year,” said Sarah Martin, senior economist for Dodge Construction Network.

Martin continued, “Weaker economic conditions and rising interest rates, however, may grind down overall consumer and business confidence as we move into 2023 — translating into fewer nonresidential building projects breaking ground.”

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