The Dodge Momentum Index, issued by Dodge Construction Network, decreased 1 percent in November to 179.2 from the revised October reading of 181.7. Over the month, the commercial and institutional components both fell 1 percent.
“While both portions of the Momentum Index saw slower momentum in planning, overall levels remain steady and will support construction spending in 2024 and 2025,” says Sarah Martin, associate director of forecasting at Dodge. “Nonresidential planning activity will remain constrained from stronger growth amidst ongoing labor and construction cost challenges.”
Excluding data center activity, all commercial segments saw declines in November. On the institutional side, more momentum in healthcare and public projects was offset by continued weakness in education planning. Year over year, the index was 14 percent lower than in November 2022. The commercial segment was down 20 percent from year-ago levels, while the institutional segment was up 2 percent over the same time period.
A total of 17 projects valued at $100 million or more entered planning in November. The largest commercial projects include a $480 million Project Cosmo Data Center in Cheyenne, Wy., and $300 million Sherwin Williams headquarters building in Cleveland. The largest institutional projects include a $315 million phase two of FSU Health Hospital in Tallahassee, Fla., and $258 million LA Convention Center Exhibition Hall in Los Angeles.
The Dodge Momentum Index is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year.
