Nonresidential Building Project Planning Remains Strong in October

On Tuesday (11-7-23), the Dodge Construction Network released its Dodge Momentum Index (DMI) for October. The DMI is a monthly measure of initial reports of nonresidential building projects in planning, shown to lead construction spending for nonresidential buildings by a full year.

The DMI increased 1% in October to 181.7 (2000=100) from the revised September reading of 180.3. Over the month, the commercial component of the DMI increased 2.0%, while the institutional component fell 1.4%.

Improvements in warehouse planning helped support commercial growth, but despite strong progress in September, education and healthcare activity slowed down this month. Year-over-year, the DMI was 8% lower. The commercial segment was down 14%, while the institutional segment was up 7%.

Adding additional background and her analysis, Sarah Martin, associate director of forecasting for Dodge Construction Network, said:

“Heightened momentum in warehouse planning activity supported the commercial side of the index this month, while muted education planning activity slowed the institutional portion. Overall levels of planning activity remain robust and will support construction spending over the next 12 to 18 months.”