by Calculated Threat on 1/08/2025 04:15:00 PM
From Dodge Information Analytics: Dodge Momentum Index Grows 10% in December
The Dodge Momentum Index (DMI), issued by Dodge Building Community, grew 10.2% in December to 212.0 (2000=100) from the revised November studying of 192.3. Over the month, industrial planning elevated 14.2% whereas institutional planning improved 2.5%.
“Commercial activity rebounded strongly in December, thanks to a re-acceleration in data center and warehouse planning activity,” acknowledged Sarah Martin, affiliate director of forecasting at Dodge Building Community. “Overall, the strong performance of the Momentum Index this past year is expected to support nonresidential construction spending throughout 2025.”
On the industrial aspect, knowledge heart and warehouse planning drove a lot of the expansion this month, whereas stronger healthcare and training exercise supported the institutional portion. In December, the DMI was up 19% when in comparison with year-ago ranges. The industrial section was up 30% from December 2023, whereas the institutional section was flat over the identical interval. The affect of information facilities on the DMI this yr has been substantial. If we take away all knowledge heart tasks in 2023 and 2024, industrial planning can be up 8% from year-ago ranges, and all the DMI can be up 5%.
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The DMI is a month-to-month measure of the worth of nonresidential constructing tasks going into planning, proven to steer building spending for nonresidential buildings by a full yr.
emphasis added
Click on on graph for bigger picture.
This graph exhibits the Dodge Momentum Index since 2002. The index was at 212.0 in December, up from 192.3 the earlier month.
Based on Dodge, this index leads “construction spending for nonresidential buildings by a full year”. This index suggests a slowdown in early 2025, however a pickup in mid-2025.
Industrial building is often a lagging financial indicator.
