It only edged up less than 1%, but that was enough to set a record high.
Dodge Construction Network is reporting that its monthly Dodge Momentum Index (DMI) increased in June to 173.6 (2000=100) from the revised May reading of 173.1. The June reading is a 14-year high for the index.
The index, which is a monthly measure of the initial report for nonresidential building projects in planning, leads construction spending for nonresidential buildings by a full year. In June, the commercial component of the index rose 4.1%, while the institutional component fell 6.2%.
According to the report, commercial planning in June was led by an increase in warehouse projects, while most other commercial buildings were flat.
For institutional planning, a decrease in education projects in June dragged the sector lower, although healthcare increased. On a year-over-year basis, the index was 9% higher than in June 2021. The commercial component was 11% higher, and the institutional component was 5% higher than one year ago.
A total of 27 projects with a value of $100 million or more entered planning in June. The leading commercial projects were:
- $400 million Somerset Nevele Resort in Ellenville, N.Y.
- $300 million first phase of the Ten85 warehouse building in Buckeye, Ariz.
The leading institutional projects were:
- $390 million 10 Twin Dolphin life science campus in Redwood City, Calif.
- $280 million expansion of the Connecticut Childrens Patient Tower in Hartford, Conn.
“A new cyclical high in the Momentum Index is a sign that developers feel that projects still have hope of moving forward, despite concerns of an impending economic slowdown. However, this sentiment will be tested in the months to come as higher interest rates eat away at business and consumer confidence,” said Richard Branch, chief economist for Dodge Construction Network.
Watch a video of the report here.
