Dodge Momentum Index moves downward in April

The Dodge Momentum Index (DMI), a monthly measure of the initial report for nonresidential building projects in planning that Dodge Construction Network issues, fell 5.1 percent in April.

The DMI fell to 180.9 from a revised March reading of 190.6. According to Dodge, the DMI has shown to lead construction spending for nonresidential buildings by a full year.

In April, the commercial component of the DMI fell 8 percent while the institutional component improved 0.3 percent.

“On par with our expectations, the Dodge Momentum Index continued to recede in April, due to declining economic conditions and ongoing banking uncertainty,” says Sarah Martin, associate director of forecasting at Dodge Construction Network. “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.”

According to Dodge, sluggish office, hotel and retail activity pushed commercial planning down in April. Institutional planning was flat, as weak education planning offset growth in health care and amusement projects.

Year over year, the DMI is 11 percent higher than the mark from April 2022. The commercial and institutional components were up 7 percent and 17 percent, respectively, in that time.

A total of 16 projects with a value of $100 million or more entered planning in April. The largest commercial projects were a $268 million warehouse in El Dorado Hills, California, and a $170 million hotel in New York City. Leading the way on the institutional side were the $450 million Desert Diamond Casino in Glendale, Arizona, and the $350 million Global Energy Park research and development laboratory in Golden, Colorado.