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I'm often in situations where I'll send an email like this one:

Hi, thing X will be getting done next week

I'll get a response,

OK, I'm glad to see it's going well.

Odd question: I always feel that it is polite to say something like "thanks" to that, but it's also a waste of an email and potentially someone's time. However, I feel like I'm being rude by not acknowledging a compliment. I'm over thinking it, but is there a procedure I can follow in situations like this?

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Unless they replied back with a question, I don't think you should.

Maybe add in a text that you'll send another email once its been released:

Hi, thing X will be done next week. Once it is ready for your review, I will send a follow up email.

That way you're saying you won't reply back.

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