Dodge Momentum Index Ticks Up In January

February 15, 2024

Dodge Momentum Index Ticks Up In January

The Dodge Momentum Index improved by 0.1% in January moving to 184.1. This was up slightly from the revised December score of 183.9. Commercial planning lowered by 1.0%, and institutional planning increased by 2.1%.

Sarah Martin, associate director of forecasting for Dodge Construction Network, stated, “Divergent trends between commercial and institutional planning continued in January, nullifying any growth on the overall Momentum Index.”

Jan-24 Dec-23 % Change
Dodge Momentum Index 184.1 183.9 0.1%
Commercial Building 207.3 209.4 -1.0%
Institutional Building 155.3 152.2 2.1%

Martin continued, “Nevertheless, lending standards begun to loosen in January and the Fed is expected to begin cutting rates in the back half of the year. With this in mind, momentum should resume in commercial activity throughout 2024 as owners and developers gain confidence in market conditions for 2025.”

Dodge stated the commercial slowdown was driven by less warehouse planning last month, while improved education and healthcare activity pushed the institutional component higher. From a yearly perspective The DMI was 3% lower than January of last year, with commercial activity 12% lower and institutional planning 15% higher.

Sources: For more information about the Dodge Momentum Index, visit the Dodge Data & Analytics website.