August 31, 2021

DMI Down 6%, Construction Starts 3%

The Dodge Momentum Index decreased 6% in July, dropping to 155.8. This was down from the revised June score of 164.9. The commercial component of the index lost 3.5% while the institutional component dropped 9.0%.

Additionally, total construction starts for July dropped 3% with residential, nonresidential building, and nonbuilding sectors all moving lower.

Despite the setbacks of the past couple months, the DMI was 25% higher than it was at this time last year.

Describing market conditions, Dodge Data & Analytics stated, “The Momentum Index posted strong gains through much of the winter and spring as the economy and building markets began to stabilize following the recession. While the economy has continued its forward progress through the summer, the Index has regressed somewhat as higher material prices and shortages of skilled labor continue to exert a strong influence over the construction sector. Despite the declines in June and July, the Momentum Index remains near levels last seen in 2018. Compared to a year earlier, the Momentum Index was 25% higher than in July 2020 — institutional planning was up 27% and commercial planning was 25% higher than last year.”