The Dodge Momentum Index (DMI), issued by Dodge Construction Network, rose 3 percent in December to 186.6 from the revised November reading of 181.5.
Over the month, commercial planning grew 1 percent and institutional planning improved 6.1 percent.
“The Momentum Index ended the year 11 percent below the November 2022 peak, ultimately stabilizing as the year progressed,” says Sarah Martin, associate director of forecasting at Dodge Construction Network. “Regardless, the DMI averaged a reading of 184.3 in 2023, hitting levels of activity that haven’t been recorded since 2008. While ongoing labor and construction cost issues will persist in 2024, a substantive amount of projects are sitting in the planning queue and will support construction spending going into 2025.”
Hotel and data center planning drove growth in the commercial segment of the momentum index over the month of December, Dodge says, while stronger healthcare and public building planning supported more momentum on the institutional side.
Year over year, the momentum index was 2 percent lower than in December 2022. The commercial segment was down 9 percent from year-ago levels, while the institutional segment was up 14 percent over the same time period.
A total of 23 projects valued at $100 million or more entered planning in December, with six valued over $400 million.
The largest commercial projects include the $500 million Universal Theme Park Kids Resort & Hotel in Frisco, Texas, and the $400 million Dog River Industrial Park in Mobile, Alabama. The largest institutional projects include two Mayo Clinic buildings, each valued at $400 million, in Rochester, Minnesota.
The 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.
