From Dodge Data Analytics: Dodge Momentum Index Dips in August
The Dodge Momentum Index (DMI) ticked down by 1.2% in August to 171.9 from the revised July figure of 174.0.
The Momentum Index, issued by Dodge Construction Network, is a monthly measure of the initial report for nonresidential building projects in planning, shown to lead construction spending for nonresidential buildings by a full year. In August, the commercial component of the Momentum Index rose 1%, while the institutional component fell 5.6%.
Commercial planning in August was led by an increase in hotel projects, while fewer healthcare projects drove the institutional component lower. Compared to August 2021, the Momentum Index was up 14%. The commercial component was 16% higher, and the institutional component was 10% higher than a year ago.
emphasis added Click on graph for larger image.
This graph shows the Dodge Momentum Index since 2002. The index was at 171.9 in August, down from 174.0 in July.
According to Dodge, this index leads “construction spending for nonresidential buildings by a full year”. This index suggests a solid pickup in commercial real estate construction at the end of this year and into 2023.