Steel Products Prices North America

Dodge Momentum Index Rose 6.6% in December

Written by David Schollaert

January 10, 2023

The Dodge Momentum Index registered 222.2 in December, up 6.6% from 208.3 in November, according to data and analytics from the Dodge Construction Network.

Dodge is the leading index for commercial real estate, using the data of planned nonresidential building projects to track spending in the sector for the next 12 months. For December, the index’s subcomponents also accelerated, with the institutional component rising 2.7% and the commercial component increasing by 8.4%.

December’s increase in the headline index was supported by broad-based increases across office, warehouse, retail, and hotel planning, the report said. The institutional component saw varied results, with growing recreation and public building projects, while education and healthcare planning activity remained flat.

Compared to December 2021, the overall Momentum Index was 40% higher last month. The institutional component was up 20%, while the commercial component was 51% higher on a year-over-year basis.

DodgeMI Dec22

The report noted that a total of 15 projects with a value of $100 million or more entered planning last month. Commercial projects include a $500-million Vantage Data Center in Sterling, Va., and a $183-million mixed-use building in Chicago, and institutional projects include a $400-million Acute Neuropsychiatric Hospital in Los Angeles, and a $185-million life sciences building in Philadelphia.

“One of the key construction storylines for 2022 was the return of enthusiasm and optimism in prospects for nonresidential growth,” said Richard Branch, Dodge’s chief economist. “While some of that will likely erode in 2023 as economic growth wanes, increased demand for some building types like data centers, labs, and healthcare buildings will provide a solid floor for the construction sector.”

An interactive history of the Dodge Momentum Index is available on our website. If you need assistance logging into or navigating the website, please contact us at info@SteelMarketUpdate.com.

By David Schollaert, David@SteelMarketUpdate.com

David Schollaert

David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.

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