The Dodge Momentum Index (DMI), issued by Dodge Construction Network, decreased 7.1% in October to 283.3 (2000=100) from the upwardly revised reading of 304.8. Over the month, commercial planning declined 2.9% and institutional planning slowed by 15.2%. Year-to-date, the DMI is up 35% from the average reading over the same period in 2024.
“After several months of record-breaking levels, planning momentum slowed in October,” stated Sarah Martin, Associate Director of Forecasting at Dodge Construction Network. “Activity remains solid across the board, especially for data centers and hospitals. However, recent growth should not solely be attributed to gains in real activity. Anticipated increases in labor and material costs are also driving up project expenses and are inflating the overall trend in the DMI. In the coming months, Dodge anticipates activity to continue to decelerate on average, especially as macroeconomic risks continue to mount.”
On the commercial side, activity slowed down for warehouses and hotels, while planning momentum was sustained for data centers, traditional office buildings and retail stores. On the institutional side, education and healthcare planning have slowed down, after strong activity in recent months. Meanwhile, recreational and public planning continued to grow. Year-over-year, the DMI was up 52% when compared to October 2024. The commercial segment was up 54% (+43% when data centers are removed) and the institutional segment was up 49% over the same period.
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The DMI is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year.
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Click on graph for larger image.
This graph shows the Dodge Momentum Index since 2002. The index was at 283.3 in October, down from 304.8 the previous month.
According to Dodge, this index leads “construction spending for nonresidential buildings by a full year”. This index suggests a pickup in mid-2025, however, uncertainty might impact these projects.