Dodge Momentum Index Increases 4% in May

The Dodge Momentum Index (DMI), a critical forward-looking indicator for nonresidential building projects, rose by 3.7% in May, reaching 211.2. This encouraging ascent was largely underpinned by a substantial 10.5% surge in institutional planning, signalling a robust pipeline for future construction activity. Commercial planning experienced a more modest 0.8% increment, with the normalisation of data centre project levels following a particularly strong April moderating overall growth. Notably, without the impact of data centres, commercial planning would have advanced by a more significant 5%, highlighting latent strength in sectors such as warehousing and hotels. Year-on-year comparisons further underscore this positive trajectory, with the DMI up 24% from May 2024. Institutional planning, bolstered by a strong influx of education and recreational projects, recorded an impressive 47% increase, whilst commercial planning climbed 15%. Senior decision-makers should recognise the DMI's proven ability to prefigure nonresidential construction spending by a full year. The continued entry of significant projects, with 33 valued at over $100 million in May spanning data centres, logistics, education, and civic infrastructure, portends sustained demand across the nonresidential sector. Read More