Dodge Momentum Index Declines in April
The Dodge Momentum Index, issued by Dodge Construction Network, fell 5.1 percent in April to 180.9 (2000=100) from the revised March reading of 190.6. In April, the residential component of the DMI gained 12%.
Residential building starts increased 12% in April to a seasonally adjusted annual rate of $373 billion. Single family and multifamily starts remained strong, increasing 14% and 10%, respectively. On a year-to-date basis through April 2023, total residential starts were down 27%. Single family starts were 34% lower.
For the 12 months ending in April 2023, residential starts were 13% lower than that ending in April 2022. Single family starts were 25% lower.
Dodge’s take on the data
“On par with our expectations, the Dodge Momentum Index continued to recede in April, due to declining economic conditions and ongoing banking uncertainty,” says Sarah Martin, associate director of forecasting for Dodge Construction Network. “Weaker commercial planning is driving the DMI’s decline, as it is more exposed to real-time economic changes than the largely publicly funded institutional segment.”