by Calculated Risk on 5/07/2025 04:01:00 PM
From Dodge Data Analytics: Dodge Momentum Index Increases 1% in April
The Dodge Momentum Index (DMI), issued by Dodge
Construction Network, grew 0.9% in April to 205.1 (2000=100) from the downwardly revised
March reading of 203.1. Over the month, commercial planning grew 3.3% while institutional
planning fell 4.2%.“Despite an uptick in April, the bulk of the DMI’s growth was driven by a surge in data center
planning, while momentum in other nonresidential sectors lagged behind,” stated Sarah Martin,
associate director of forecasting at Dodge Construction Network. “Owners and developers are
navigating heightened economic and policy uncertainty, which likely bogged down much of this
month’s planning activity.”A wave of data center projects entering planning played a key role in boosting commercial
growth. Without data centers, commercial planning would have receded 2.3% in April and the
entire DMI would have receded 3.0%. Office and hotel planning saw a sharp retreat this month,
while warehouse and retail planning modestly ticked up. On the institutional side, planning
momentum waned for education, healthcare, and government buildings. This was slightly offset
by an uptick in recreational projects.
…
The DMI is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year.
emphasis added
This graph shows the Dodge Momentum Index since 2002. The index was at 205.1 in April, up from 220.9 the previous month.
According to Dodge, this index leads “construction spending for nonresidential buildings by a full year”. This index suggests a pickup in mid-2025, however, uncertainty might impact these projects.
Commercial construction is typically a lagging economic indicator.