The Dodge Momentum Index (DMI) dropped to 115.8 in September, from a downwardly revised 116.6 reading the month prior. Commercial building and institutional building plans both fell during the month.
Setback in Planning Activity
- After a strong first half of the year, the Dodge Momentum Index (DMI) fell in each of the past three months and is down a collective 7 percent. Despite the string of weak readings, the DMI is up 11 percent over the past three months relative to the same period one- year earlier.
- The drop in this month’s DMI reading was broad based, with commercial building falling by 0.8 percent and institutional building plans decreasing 0.4 percent.
DMI Still Showing Promising Signs of Growth
- Despite recent weakness, the DMI is still up 8 percent year-overyear, marking almost two years of positive growth. The trend is consistent with the American Institute of Architects (AIA) billings index showing that weaker commercial building is on the horizon, while institutional construction gradually improves.
- Even with September’s drop, two substantial new projects started the planning process in Las Vegas, NV and New York, NY, valued at $500 million and $130 million, respectively.