The Dodge Momentum Index (DMI) decreased by 1% in November to 179.2 from a revised October reading of 181.7. Dodge Construction Network (DCN) officials say the commercial and institutional segments fell 1%.

Sarah Martin, DCN’s associate director of forecasting, says that while November’s DMI decreased, the overall number of projects in planning will continue to support construction spending over the next two years.

The DMI 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.

Sarah Martin, DCN’s associate director of forecasting, says that while the DMI decreased, the overall number of projects in planning will continue to support construction spending over the next two years.

“While both portions of the DMI saw slower momentum in planning, overall levels remain steady and will support construction spending in 2024 and 2025,” says Martin. “Nonresidential planning activity will remain constrained from stronger growth amidst ongoing labor and construction cost challenges.”

DCN data shows that all commercial sectors reported November declines outside of data center projects. Growth in healthcare and public projects helped offset continued weaknesses in educational planning. Year-over-year, the DMI was 14% lower than in November 2022. The commercial sector was down 20%, while the institutional component was up 2%.

Seventeen projects valued at $100 million or more entered planning in November. The largest commercial projects include the $480 million Project Cosmo Data Center in Cheyenne, Wyo., and the $300 million Sherwin Williams Headquarters Building in Cleveland. The largest institutional projects include the $315 million phase two of the FSU Health Hospital in Tallahassee, Fla., and the $258 million Los Angeles Convention Center Exhibition Hall.

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