Dodge construction index rebuffs recession fears, hits 14-year high
Dodge construction index rebuffs recession fears, hits 14-year high
Abstract
The Dodge Momentum Index (DMI) inched up 0.3% in June to hit a 14-year high for the benchmark that measures nonresidential building planning. Manufacturing construction starts led the group and reached a record $41.6 billion over the last 12 months ending May 2022, according to Dodge data. This peak is largely due to U.S. onshoring efforts. But this positive sentiment will soon come under fire. The Federal Reserve’s tightening policy to fight inflation has increased the possibility of driving the economy into recession. The Fed's tightening policy has also increased the likelihood of driving it into recession either later this year or at some point in 2023.
