Steel Markets
Dodge Momentum Index Dips in November
Written by David Schollaert
December 7, 2021
The Dodge Momentum Index contracted in November following a 10.0% expansion the month prior. The index registered 171.7 in November, a 4.0% decline against the revised October reading of 178.1, according to data and analytics from the Dodge Construction Network.
The value of nonresidential building projects continues to move in a sawtooth pattern, alternating between a month of gains followed by a loss. In November, commercial planning fell 8.0% while institutional planning moved 5.0% higher. Since the pandemic began, nonresidential building projects entering planning have been more volatile than in past cycles, likely driven by increased challenges from higher prices and lack of labor, said Dodge.
Despite these issues and a lack of underlying demand for some building types such as offices and hotels, the Momentum Index remains near a 14-year high. Compared to November 2020, the Momentum Index was 44% higher last month. The commercial planning component was 45% higher, and institutional was 41% higher.
The report noted that a total of 10 projects with a value of $100 million or more entered planning in November. The leading commercial projects were a $240 million Seefried Industrial Properties warehouse in Mesa, Ariz., and a $158 million Prologis warehouse in Lebanon, Tenn. The leading institutional projects were the $450 million Wake Forest Baptist Medical Center in Winston-Salem, N.C., and the $241 million Hoboken High School in Hoboken, N.J.
Planning data continues to suggest a healthy level of construction to come in 2022. Yet, due to higher prices and shortages of labor, actual growth is expected to be modest. The new Omicron variant, and its potential impact on economic growth, highlights the tremendous uncertainly the construction sector will face over the coming year, the report said.
An interactive history of the Dodge Momentum Index is available here on our website; an example is shown below. If you need assistance logging into or navigating the website, please contact us at info@SteelMarketUpdate.com.
David Schollaert
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