{"id":28435,"date":"2024-12-06T10:24:02","date_gmt":"2024-12-06T18:24:02","guid":{"rendered":"https:\/\/essential.construction\/news\/dodge-momentum-index-slides-2-in-november\/"},"modified":"2024-12-06T10:24:03","modified_gmt":"2024-12-06T18:24:03","slug":"dodge-momentum-index-slides-2-in-november","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/dodge-momentum-index-slides-2-in-november\/","title":{"rendered":"Dodge Momentum Index Slides 2% in November"},"content":{"rendered":"

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https:\/\/www.youtube.com\/watch?v=h49tXZE8yJ4<\/a><\/p>\n

Most commercial sectors continued to fall back throughout the month.<\/span><\/span><\/em><\/p>\n

BEDFORD, M.A. \u2013 December 6, 2024 <\/span><\/b>\u2014<\/span><\/b> The Dodge Momentum Index (DMI), issued by <\/span>Dodge<\/span><\/a> Construction Network<\/span><\/a>, decreased 2.3% in November to 191.5 (2000=100) from the revised October reading of 196.0. Over the month, commercial planning fell 4.6% while institutional planning improved 2.5%.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cThroughout 2024, we\u2019ve seen robust growth in nonresidential planning activity \u2013 but labor shortages and high construction costs have prevented those projects from moving through the planning process at a normal pace. The current backlog may be constraining demand for commercial planning in the short-term,\u201d stated Sarah Martin, associate director of forecasting at Dodge Construction Network. \u201cUncertainty over new tariff and immigration policies under President-elect Trump\u2019s administration may also generate some pause with developers, although it\u2019s a bit too early to tell if that\u2019s the primary factor here. Overall, easing monetary policy will help alleviate the backlog of projects in the planning queue throughout 2025 and spur more demand for projects in the coming months.\u201d<\/span>\u00a0<\/span><\/p>\n

On the commercial side, slower data center, office, warehouse and retail planning drove much of this month\u2019s decline, while strong growth in education planning informed much of the growth on the institutional side. The institutional portion of the DMI has grown in 5 of the last 6 months.<\/span>\u00a0<\/span><\/p>\n

In November, the DMI was 12% higher than year-ago levels. The commercial segment was up 13% from November 2023, while the institutional segment was up 8% over the same period. The influence of data centers on the DMI this year has been substantial. If we remove all data center projects in 2023 and 2024, commercial planning would be down 6% from year-ago levels, and the entire DMI would be down 1%.<\/span>\u00a0<\/span><\/p>\n

A total of 17 projects valued at $100 million or more entered planning throughout November. The largest commercial projects included $350 million Bally\u2019s Hotel Tower and Casino in Las Vegas, Nevada and the $312 million Accokeek Data Center in Stafford, Virginia. The largest institutional projects to enter planning were the $465 million student dormitory at UC Berkeley, California and the $323 million Intensive Treatment Tower at Texas Health Presbyterian in Plano, Texas.\u00a0<\/span>\u00a0<\/span><\/p>\n

The DMI 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.<\/span>\u00a0<\/span><\/p>\n

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