Economy

Commercial segment drives December growth for Dodge Momentum Index

Written by Becca Moczygemba

January 9, 2024

The Dodge Momentum Index (DMI) gained traction in December thanks to improved commercial conditions, according to the latest Dodge Construction Network (DCN) data.

The DMI increased in December to 186.6, DCN said on Monday, Jan. 8. That’s a 3% increase from November’s revised reading of 181.5. However, year over year the reading is down 2%.

“The DMI averaged a reading of 184.3 in 2023, hitting levels of activity that haven’t been recorded since 2008,” Sarah Martin, associate director of forecasting for DCN, said in a statement.

“While ongoing labor and construction cost issues will persist in 2024, a substantive amount of projects are sitting in the planning queue and will support construction spending going into 2025,” Martin added.

Hotel and data center planning were particularly strong within the commercial sector. Stronger healthcare and public building planning drove the institutional side, reported DCN.

Overall, 23 projects valued at $100 million and up entered planning in December. Six of those projects have a $400 million value or higher, DCN said.

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.

Becca Moczygemba

Becca Moczygemba is a reporter and editor for Steel Market Update. She has been in the steel industry since 2017, specializing in flat-rolled products. Prior to joining SMU, she held positions at Mitsui & Co. and Kloeckner Metals. Becca has a BA in Organizational/Corporate Communication from the University of Houston and an MBA from Norwich University. Contact Becca at becca@steelmarketupdate.com or 724-720-1000.

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