Dodge Momentum Index slips in November

By Kevin Yanik| December 7, 2023

Dodge Construction Network’s Dodge Momentum Index measuring the monthly value of nonresidential building projects going into planning decreased 1 percent in November.

The commercial and institutional components both fell 1 percent in November, the firm says.

“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 for Dodge Construction Network. “Nonresidential planning activity will remain constrained from stronger growth amidst ongoing labor and construction cost challenges.”

Excluding data center activity, Dodge Construction Network says all commercial segments saw declines in November. On the institutional side, more momentum in health care and public projects was offset by continued weakness in education planning.

Year over year, the Dodge Momentum Index is 14 percent lower than it was in November 2022. The commercial segment is down 20 percent from year-ago levels, and the institutional segment is up 2 percent in that time.

Projects entering planning

According to Dodge Construction Network, 17 projects valued at $100 million or more entered planning in November.

The largest commercial projects were the $480 million Project Cosmo data center in Cheyenne, Wyoming, and the $300 million Sherwin Williams headquarters building in Cleveland.

The largest institutional projects were the $315 million phase two of the FSU Health hospital in Tallahassee, Florida, and the $258 million Los Angeles Convention Center exhibition hall in Los Angeles.

The Dodge Momentum Index has shown to lead construction spending for nonresidential buildings by a full year, Dodge Construction Network says.