September 8, 2021

DMI Drops for Third Consecutive Month

The Dodge Momentum Index lowered 3% in August, dropping to 148.7. This was down from the revised July score of 154.0. The commercial component of the index lost 2% while the institutional component dropped 6%.

Despite the pullback from stronger numbers in spring, the DMI was 19% higher than it was at this time last year. Additionally, more data center, education, and warehouse projects entered planning in August than in July. Year-to-year, commercial planning was 20% higher and institutional planning was up 17%.

Describing the challenging conditions, Dodge Data & Analytics stated, “The decline in August was the third consecutive drop in the Momentum Index, which is now off 14% from the most recent high in May, since May the commercial component is down 10% and the institutional component is 22% lower. This reversal comes as prices for materials used in nonresidential buildings increase in combination with a shortage of labor and a rising number of new COVID-19 cases from the Delta variant, all working in concert to undermine confidence in the fledgling construction recovery.”