November 9, 2020

DMI Drops in October

The Dodge Momentum Index dropped 1.8% in October, moving to 127.5. This was down from the revised September reading of 129.8. The commercial component of the index was down 4.4%. The institutional component was up 3.3%.

Describing the slow progress since the index reached a low in June, Dodge Data & Analytics stated, “The Momentum Index has struggled to make consistent gains since passing its post-pandemic low in June. Economic growth has slowed over the past few months, creating weaker demand for commercial projects. The fear about a new wave of COVID-19 infections may also be impeding planning activity in consumer-focused projects such as hotels and retail, although planning for warehouse projects continues to impress. Even with this month’s gain, the institutional component of the Momentum Index remains well below levels seen prior to the pandemic as state and local entities come to grips with the widening budget chasm.”