Slower planning throughout a number of segments drove weaker exercise this month.
BEDFORD, M.A. – November 7, 2024 — The Dodge Momentum Index (DMI), issued by Dodge Building Community, decreased 5.3% in October to 197.2 (2000=100) from the revised September studying of 208.2. Over the month, industrial planning fell 6.7%, and institutional planning declined 2.0%.
“Along with knowledge heart planning normalizing, a reasonable pullback within the variety of planning tasks for a number of different nonresidential sectors additionally contributed to the decline within the Dodge Momentum Index for October,” said Sarah Martin, affiliate director of forecasting at Dodge Building Community. “Regardless, homeowners and builders stay assured in subsequent yr’s market situations, and the planning queue stays poised to spur stronger development exercise in 2025, following deeper price cuts by the Fed.”
Most industrial classes confronted declines all through October, apart from lodge planning – which continued to realize momentum. On the institutional aspect, schooling and public planning exercise expanded, offset by weaker exercise in healthcare, leisure, and spiritual tasks.
This month, the DMI was 13% greater than in October of 2023. The industrial phase was up 18% from year-ago ranges, whereas the institutional phase was up 3% over the identical interval. The affect of knowledge facilities on the DMI this yr has been substantial. If we take away all knowledge heart tasks from January to October, industrial planning can be down 4% from year-ago ranges, and the complete DMI can be down 2%.
A complete of 18 tasks valued at $100 million or extra entered planning all through October. The most important industrial tasks included $450 million EdgeCloudLink Information Heart in Houston, Texas and the $410 million GFT Lodge in Arlington, Texas. The most important institutional tasks to enter planning have been the $300 million Kellogg College Constructing at Northwestern College and the $270 million Primrose College of Stevens Ranch in San Antonio, Texas.
The DMI is a month-to-month measure of the worth of nonresidential constructing tasks going into planning, proven to guide development spending for nonresidential buildings by a full yr.
