Leading index of commercial real estate “Slight growth in June”

on Estimated risk per 07/12/2022 14:19:00

From Dodge Data Analytics: Dodge Momentum Index Hits 14-Year High With Slight Gain In June

The Dodge Momentum Index (DMI) rose less than one percentage point in June to 173.6. (2000 = 100) compared to May’s revised 173.1, pushing the figure to a 14-year high.

The Momentum Index, produced by the Dodge Construction Network, is a monthly measure of the initial report on non-residential construction projects in the planning stage. It is shown that the index is ahead of the cost of construction of non-residential buildings for the whole year. In June, the commercial component of the Momentum Index rose by 4.1%, while the institutional component fell by 6.2%.
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Dodge Momentum Index Click on the graph to enlarge the image.

This chart shows the Dodge Momentum Index since 2002. The index was 173.6 in June compared to 173.1 in May.

According to Dodge, this figure translates into “a full year of non-residential construction spending.” This index assumes a decline in commercial real estate construction throughout most of 2021, but a steady increase this year and into 2023.