Data from the latest Dodge Momentum Index (DMI) shows a slight decline of 2.0% to 180.5 for May, continuing a three-month downturn that follows April’s revised total of 184.1 and the 183.7 figure that was recorded in March. 

For the month, the DIM’s commercial component fell to 6.1%, while the institutional component improved to 5.6%. 

The Dodge Construction Network notes that the commercial sector was impacted by continued poor showings in hotel and office planning. In terms of year-over-year numbers, the DMI is now 11% higher than in May of last year. (Dodge notes that the commercial and institutional components were up 7% and 18%, respectively.)

“The DMI dipped in May amid sustained weakness in commercial planning activity,” Sarah Martin, the associate director of forecasting for Dodge Construction Network, said in a statement. “Conversely, institutional planning steadily improved over the month as research and development laboratories and hospital projects steadily entered planning. Sustained elevation in the federal funds rate and tighter lending standards will likely constrain growth in the DMI over the second half of 2023; however, the index remains above the historical average. This paints an optimistic landscape for non-residential construction in mid-2024, as the economy recovers and the Fed begins to pull back rates.”

A total of 30 projects valued at $100 million or more entered planning in May. The largest commercial projects included Buildings 3 and 4 of the Blue Sky Data Center project in Omaha, Nebraska, which are each valued at $466 million a piece, followed by the $400 million Prime Data Center Arizona. The institutional side was led by the BIG and William Rawn Associates(with EOA Architects) $500 million new Tennessee Performing Arts Center in Nashville and the $440 million Rady Children’s Hospital ICU/EMS Pavilion in San Diego.