The Dodge Momentum Index (DMI) increased by 3.8% in November to 207.2 from October’s score of 199.6, reports the Dodge Construction Network (DCN). According to the organization, the DMI’s commercial component rose by 4.3% and the institutional component increased by 2.7%.
The Momentum Index measures monthly nonresidential building projects in planning. Per the DCN, the DMI is shown to lead construction spending for nonresidential buildings by a full year.
The DCN states that commercial planning rose substantially thanks to an increase in hotel and data center projects. Education and healthcare projects slowed in November, however. On a year-over-year basis, the DMI was 25% higher than in November 2021, the commercial component was up 28% and institutional planning was 21% higher.
“The Momentum Index continued to rise in November, conveying hopefulness from owners and developers that the construction sector will endure the possible economic slowdown next year,” says Sarah Martin, senior economist for the DCN. “The rate of increase in the DMI, however, has steadied over the month. Labor and supply shortages, high material costs and interest rates could temper planning activity over the next 12 months to a more modest pace.”
A total of 21 projects with a value of $100 million or more entered planning in November, says the DCN. The leading commercial projects included two $500 million segments of a Facebook data center in Sandston, Va., and the $400 million Sunset Industrial Park warehouse in Sunset Park, N.Y. The leading institutional project comprised the $185 million Hollywood Casino relocation in Joliet, Ill., and the $160 million Smith County courthouse in Tyler, Texas.