August 10, 2022

Dodge Momentum Index Increases In July

The Dodge Momentum Index grew 2.9% in July moving to 178.7. This was up from the revised June score of 173.6. The commercial planning index moved up 5.5%, while the institutional component dropped 2.0%.

Dodge Data and Analytics cited an increase in data center, office and warehouse projects leading the commercial rally, while a decrease in education and healthcare projects brought the institutional component down.

“The Momentum Index has yet to show signs of stress as recession fears mount. This shows that developers and owners remain confident that nonresidential building projects will weather the storm of higher interest rates and a slowing economy,” said Richard Branch, chief economist for Dodge Construction Network.

Compared to this time last year, the commercial component was 15% higher, while the institutional component was 3% lower.

Branch continued, “Whether this can be sustained over the medium term remains a key question that will ultimately dictate the pattern for construction starts in 2023.”

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