The Dodge Momentum Index, issued by Dodge Construction Network, slipped 5.3 percent last month.
Commercial planning fell 6.7 percent in October while institutional planning dropped 2 percent.
The Dodge Momentum Index is Dodge Construction Network’s monthly measure of the value of nonresidential building projects going into planning. The firm says the measure has shown to lead construction spending for nonresidential buildings by a full year.
“In addition to data center planning normalizing, a moderate pullback in the number of planning projects for several other nonresidential sectors also contributed to the decline in the Dodge Momentum Index for October,” says Sarah Martin, associate director of forecasting at Dodge Construction Network. “Regardless, owners and developers remain confident in next year’s market conditions, and the planning queue remains poised to spur stronger construction activity in 2025, following deeper rate cuts by the Fed.”
According to Dodge, most commercial categories faced declines throughout October – aside from hotel planning, which continued to gain momentum.
On the institutional side, education and public planning activity expanded. Weaker activity in health care, recreational and religious projects offset those gains, though.
Eighteen projects valued at $100 million or more entered planning throughout October, Dodge says. The largest commercial projects were the $450 million EdgeCloudLink data center in Houston and the $410 million GFT Hotel in Arlington, Texas. The largest institutional projects to enter planning were the $300 million Kellogg School Building at Northwestern University and the $270 million Primrose School of Stevens Ranch in San Antonio.
