Dodge Momentum Index up in October

The Dodge Momentum Index, issued by Dodge Construction Network, improved 9.6 percent in October to 199.7 from the revised September reading of 182.2.

During the month, the momentum index continued its steady ascent with the commercial component rising 13 percent and the institutional component ticking up 2.9 percent, according to Dodge Construction Network.

The momentum index is a monthly measure of the initial report for nonresidential building projects in planning, shown to lead construction spending for nonresidential buildings by a full year.

Commercial planning was bolstered by a solid increase in office and hotel projects, according to Dodge. The institutional component was varied, experiencing growth in recreational and education projects, countered by a decline in the number of healthcare and public planning projects.

Year over year, the momentum index was 28 percent higher than in October 2021, the commercial component was up 29 percent and institutional planning was 25 percent higher.

Specific projects

A total of 15 projects with a value of $100 million or more entered planning in October.

The leading commercial projects included a $206 million expansion to the M Resort in Henderson, Nevada, and the second phase of the $180 million 1416 Dodge Office Towers in Omaha, Nebraska. The leading institutional projects were the $500 million uCity Square Lab & Office Complex in Philadelphia and the $294 million life science R&D laboratory complex in San Carlos, California.

“The sustained upward trajectory in the momentum index shows optimism from owners and developers that projects will continue to move forward, even with rising concerns of an economic recession,” says Sarah Martin, senior economist at Dodge Construction Network. “Specific nonresidential segments, such as data centers and life science laboratories, have thrived in 2022 and continue to support strength in planning activity. As we move into next year, however, labor and supply shortages, high material costs and high interest rates will likely temper planning activity back to a more moderate pace.”