Dodge Momentum Index Falls 9.0% in October as Commercial Planning Drops 13.4%
Updated
Updated · Construction Citizen · Nov 7
Dodge Momentum Index Falls 9.0% in October as Commercial Planning Drops 13.4%
1 articles · Updated · Construction Citizen · Nov 7
Summary
October’s Dodge Momentum Index fell 9.0% from a downwardly revised September reading, signaling weaker nonresidential building planning that typically leads spending by 12 to 18 months.
Commercial planning drove the decline, dropping 13.4% as data centers, warehouses, parking garages, offices and hotels slowed; institutional planning slipped 1.5%, with retail the only commercial sector to grow.
Year over year, the index was down 2.4%, with commercial off 17.6% while institutional rose 33.4%; Dodge said commercial would still be down 16.6% even excluding data centers.
September construction spending already showed that split: private nonresidential spending rose 2.3% from a year earlier, but gains were concentrated in data centers, up 90%, while most other private nonresidential categories fell 3.9%.
If data centers are single-handedly propping up nonresidential construction, what happens to the entire industry when this digital infrastructure boom finally cools?
Why are construction wages and labor shortages hitting record highs while traditional residential and commercial building projects continue to plummet?