The Dodge Momentum Index (DMI) slipped in November due to slightly weaker commercial and institutional activity, according to the latest Dodge Construction Network (DCN) data.
The DMI declined 1% to 179.2 in November from October’s revised reading of 181.7. November’s reading is 14% lower than the same time last year.
“While both portions of the Momentum Index saw slower momentum in planning, overall levels remain steady and will support construction spending in 2024 and 2025,” Sarah Martin, DCN’s associate director of forecasting, said in a statement.
“Nonresidential planning activity will remain constrained from stronger growth amidst ongoing labor and construction cost challenges,” she added.
All commercial segments except data centers saw declines in November. Improved momentum in healthcare and public projects on the institutional side was offset by ongoing weakness in education planning, the report said.
Month over month, the commercial segment of the DMI fell 1.4%, while the institutional component fell 1.5%. Year over year, the commercial portion was down 20%, while the institutional area rose 2%.
Dodge is the leading index for commercial real estate, using the data of planned nonresidential building projects to track spending in the important steel-consuming sector for the next 12 months. An interactive history of the DMI is available on our website.
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