Dodge Momentum Index Recedes 4% in September

Slower knowledge heart momentum moderates planning exercise over the month 

BEDFORD, M.A. – October 7, 2024 — The Dodge Momentum Index (DMI), issued by Dodge Development Community, decreased 4.2% in September to 208.6 (2000=100) from the revised August studying of 217.7. Over the month, business planning contracted 7.8% and institutional planning improved 5.2%.  

“Regardless of this month’s decline, the Dodge Momentum Index stays at very sturdy ranges”, said Sarah Martin, affiliate director of forecasting at Dodge Development Community. “A surge in knowledge heart exercise drove a lot of the current speedy development within the DMI – in order planning for that sector moderated over the month, total business planning fell again. By mid-2025, the Fed’s charge cuts ought to spur planning initiatives to achieve groundbreaking extra shortly – resulting in stronger nonresidential exercise as 2025 progresses.” 

Industrial planning typically receded over the month. After gaining some steam in current months, warehouse, workplace and shops planning exercise all slowed down. Accommodations, however, have been gaining velocity over the previous 5 months, increasing steadily in September. Information facilities continued to dominate giant undertaking exercise, however the charge at which planning initiatives entered the queue continued to average from the above-average ranges of development in current months. On the institutional facet, schooling, healthcare and leisure initiatives had been the first drivers of this previous month’s enlargement, with solely non secular planning posting a decline. This month, the DMI was 21% greater than in September of 2023. The business phase was up 31% from year-ago ranges, whereas the institutional phase was up 4% over the identical interval.  

 A complete of 28 initiatives valued at $100 million or extra entered planning all through September. The biggest business initiatives included the $390 million Mission Nova Information Middle in Eagan, Minnesota and Section 1 and a couple of of the SNA Information Middle in Cedar Rapids, Iowa – valued at $375 million per section. The biggest institutional initiatives to enter planning had been the $300 million Kairos Energy R&D lab facility and the $215 million section 2 of the Kentucky Exposition Middle redevelopment in Louisville, Kentucky.  

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 yr.