Dodge Momentum Index Recedes 1.4% in February

(Illustration courtesy of Dodge Construction Network)

The Dodge Momentum Index dipped 1.4% in February to 180.5 from January’s 183.0 reading, indicating fewer buildings going into the planning stage.

The index closed 2023 at a 186.6 reading, according to the Dodge Construction Network, Bedford, Mass.

The Dodge Momentum Index is a monthly measure of the value of nonresidential building projects going into the planning stage, which generally leads construction spending for nonresidential buildings by one year. It reported planning for commercial buildings fell 2.3% and institutional planning ticked up 0.1% in February.

“Weaker office and healthcare planning constrained nonresidential planning in February,” said Sarah Martin, associate director of forecasting for Dodge. “However, the Index remains 25% higher than where it was just two years ago.”

Martin noted most other categories showed growth over the month and said she remains optimistic that nonresidential planning will stay elevated throughout 2024 alongside rising confidence in 2025 market conditions.”

“Slower growth in office planning pulled down the commercial portion of the index this month,” the report said. “On the institutional side, slower healthcare and amusement planning was offset by stronger education planning, keeping this portion of the DMI flat in February.”

A total of 17 projects valued at $100 million or more entered planning during February. The largest commercial projects included the $220 million QTS Data Center in Fort Worth, Texas, and the $150 million DOT Transit Maintenance Facility in Boulder, Colorado. The largest institutional projects were the $348 million Island Parkway Life Sciences Campus in Belmont, Calif. and the $304 million New York Presbyterian Cancer Center in New York.