Weekly Market Pulse: Machinery & Construction | North America

Research evidence excerpt

Weekly Market Pulse: Machinery & Construction | North America

Idea

July 12, 2026 09:41 PM GMT

Morgan Stanley & Co. LLCMMachinery & Construction | North America Angel Castillo

Equity Analyst

Weekly Market Pulse Angel.Castillo@morganstanley.comStefan Diaz, CFA +1 212 761-1931

Stefan.Diaz@morganstanley.com +1 212 761-1834

DMI lower MoM; Road and Transport awards strong in May; PSI Oliver Jiang

up MoM; Existing Home Sales down MoM; Purdue Farmer ResearchOliver.Jiang@morganstanley.comAssociate +1 212 761-6458

Sentiment declined MoM; ACT net orders of 31.4k (+231% YoY), Esther O Osinaiya

Research Associate

EPA unveils long-awaited amendments to emission rules; ACT Esther.Osinaiya@morganstanley.com +1 212 761-3176

'26 forecasts slightly higher Machinery & Construction

North America

Industry View Attractive

Construction: The Dodge Momentum Index (DMI) decreased -1.9% MoM in June to

271.7, from an upwardly revised May reading of 277.1, driven by commercial planning

-6.8%, partially offset by institutional planning +10.9%. Commercial weakness was

driven by moderating data center planning momentum, which pulled back from the

strong pace in recent months. Institutional planning saw broad-based strength led

by healthcare, recreational, government, and religious building activity ( Exhibit 8 ).

On a YoY basis, the DMI was up +21.8%. ARTBA State and Local Contract Awards

increased +102% YoY in May reversing YTD weakness. The monthly increase was

driven in large part by bridge and tunnel work (+369% YoY) and highway and

pavement work (+160% YoY) ( Exhibit 9 - Exhibit 12 ). YTD contract awards are

+8%. ConstructConnect Project Stress Index (PSI) increased +24% MoM in June to

109 (100 represents average level of 2021 stress). The MoM increase was driven