May 7, 2023

Dodge Momentum Index Drops in April

The Dodge Momentum Index decreased by 5.1% in April moving to 180.9. This was down from the revised March score of 190.6. The loss was led by a decline in commercial planning which dropped 8.0%, while institutional planning increased 0.3%, an essentially flat score.

The decline was expected by Sarah Martin, associate director of forecasting for Dodge Construction Network, who attributed “declining economic conditions and ongoing banking uncertainty” in a press release. Martin continued, “Weaker commercial planning is driving the DMI’s decline, as it is more exposed to real-time economic changes than the largely publicly funded institutional segment.”

The report by Dodge cited “sluggish office, hotel, and retail activity” as factors contributing to the commercial activity decline. The flatness of the intuitional component was attributed to a weakness in educational planning which offset “growth in healthcare and amusement projects.”

The DMI was 11% higher than April of last year with 7% and 17% higher scores for the commercial and institutional components respectively.

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