Dodge Momentum Index Expands Another 8% in July

Planning momentum is constructing throughout a number of business and institutional segments

BEDFORD, M.A. – July 9, 2024 — The Dodge Momentum Index (DMI), issued by Dodge Building Community, elevated 7.9% in July to 216.3 (2000=100) from the revised June studying of 200.5. Over the month, business planning elevated by 6.8%, and institutional planning expanded by 11.1%.   

“Whereas knowledge facilities have had an outsized affect on nonresidential planning exercise in latest months, extra momentum is constructing throughout many different main sectors and diversifying the story behind July’s development,” acknowledged Sarah Martin, affiliate director of forecasting at Dodge Building Community. “The potential Fed fee minimize in September is changing into more and more extra possible, alongside slower inflation and weaker labor market situations. That is possible driving homeowners and builders to stay optimistic about 2025 market situations and pushing extra tasks into the planning queue.” 

Inside the business portion of the Index, development was widespread throughout all segments. Information facilities continued to play an essential position in development, and retail planning has been steadily accelerating over the previous eight months. On the institutional facet, healthcare was the first driver of this month’s growth. In July, the DMI was 17% larger than in July of 2023. The business phase was up 35% from year-ago ranges, whereas the institutional phase was down 14% over the identical interval.  

A complete of 23 tasks valued at $100 million or extra entered planning all through July. The biggest business tasks included the $483 million Microsoft SAT82 Information Middle in Castroville, Texas, and the $480 million Yorkville Information Middle Campus in Little Rock Township, Illinois. The biggest institutional tasks to enter planning had been the $325 million UCSF Kids’s Hospital renovation in Oakland, California, and the $278 million Memorial Hermann Cypress Hospital growth in Cypress, Texas.  

The DMI is a month-to-month measure of the worth of nonresidential constructing tasks going into planning, proven to guide building spending for nonresidential buildings by a full 12 months.