San Fran Construction 1025

Dodge Momentum Index Declines in April After Pullback in Commercial Planning

May 5, 2023
The Dodge Momentum Index (DMI), issued by Dodge Construction Network, fell -5.1% in April to 180.9 points (2000=100) from the revised March reading of 190.6 points. In April, the commercial component of the DMI fell -8%, and the institutional component improved +0.3%. The DMI 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.

“On par with our expectations, the Dodge Momentum Index continued to recede in April, due to declining economic conditions and ongoing banking uncertainty.” Said Sarah Martin, associate director of forecasting for Dodge Construction Network, in the press release. “Weaker commercial planning is driving the DMI’s decline, as it’s more exposed to real-time economic changes than the largely publicly funded institutional segment.”

Commercial planning in April was pushed down by sluggish office, hotel and retail activity. Institutional planning remained flat, as weak education planning offset growth in healthcare and amusement projects. Year-over-year, the DMI remains +11% higher than in April 2022. The commercial and institutional components were up +7% and +17% respectively.

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