by Calculated Danger on 9/10/2024 11:22:00 AM
From Dodge Information Analytics: Dodge Momentum Index Rises 3% in August
The Dodge Momentum Index (DMI), issued by Dodge Building Community, elevated 2.9% in August to 220.4 (2000=100) from the revised July studying of 214.2. Over the month, business planning expanded 1.9% and institutional planning improved 5.7%.
“Owners and developers continued to prime the planning queue in August, ahead of next year’s anticipated stronger market conditions,” acknowledged Sarah Martin, affiliate director of forecasting at Dodge Building Community. “With the Fed’s September rate cut all but finalized, the influence of selective lending standards and inflation should moderate next year, alongside a modest upgrade to consumer demand. As a result, stronger planning activity was widespread in August, with most nonresidential sectors seeing growth.”
Industrial planning noticed one other month of broad-based enhancements. After slowing down in recent times, warehouse initiatives have gained momentum over the past three months. Accommodations and retail planning have been steadily increasing as properly. Information facilities continued to dominate giant challenge exercise, however the charge at which planning initiatives entered the queue in August moderated after a number of months of very robust progress. On the institutional facet, healthcare was the first driver of this previous month’s growth, adopted by leisure planning. In August, the DMI was 31% greater than in August of 2023. The business phase was up 42% from year-ago ranges, whereas the institutional phase was up 8% over the identical interval.
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The DMI is a month-to-month measure of the worth of nonresidential constructing initiatives going into planning, proven to steer development spending for nonresidential buildings by a full 12 months.
emphasis added
Click on on graph for bigger picture.
This graph exhibits the Dodge Momentum Index since 2002. The index was at 220.4 in August, up from 214.2 the earlier month.
In line with Dodge, this index leads “construction spending for nonresidential buildings by a full year”. This index suggests a slowdown in 2024 and early 2025, however a pickup in mid-2025.
Industrial development is usually a lagging financial indicator.
