by Calculated Danger on 5/08/2024 02:53:00 PM
From Dodge Information Analytics: Dodge Momentum Index Rose 6% in April
The Dodge Momentum Index (DMI), issued by Dodge Development Community, elevated 6.1% in April to 173.9 (2000=100) from the revised March studying of 164.0. Over the month, business planning improved 12.6% and institutional planning dropped 6.3%.
“The Dodge Momentum Index (DMI) saw positive progress in April, alongside a deluge of data center projects that entered the planning stage,” acknowledged Sarah Martin, affiliate director of forecasting at Dodge Development Community. “Outsized demand to build Cloud and AI infrastructure is supporting above-average activity in the sector. Most other categories, however, faced slower growth over the month. Across these industries, it’s likely that owners and developers are grappling with uncertainty around interest rates and labor shortages, thus delaying their decisions to push projects into the planning queue. If interest rates begin to tick down in the latter half of 2024, more substantive growth in nonresidential planning activity should follow.”
A flood of knowledge middle initiatives entered planning in April, inflicting sturdy progress within the business phase of the DMI, whereas conventional workplace and resort initiatives continued to face slower momentum. Warehouse planning was principally flat. On the institutional facet, schooling and healthcare planning exercise receded once more – partly, pushed by one other month of weak life science and R&D laboratory exercise. 12 months over 12 months, the DMI was 1% decrease than in April 2023. The business phase was up 6% from year-ago ranges, whereas the institutional phase was down 15% over the identical interval.
…
The DMI is a month-to-month measure of the worth of nonresidential constructing initiatives going into planning, proven to guide development spending for nonresidential buildings by a full 12 months.
emphasis added
Click on on graph for bigger picture.
This graph reveals the Dodge Momentum Index since 2002. The index was at 173.9 in April, up from 164.0 the earlier month.
In response to Dodge, this index leads “construction spending for nonresidential buildings by a full year”. This index suggests a slowdown in 2024.
Industrial development is usually a lagging financial indicator.
