The latest Dodge Momentum Index report from the Dodge Construction Network shows a slight drop of 1.2% from July’s revised record peak of 174.0, driven by declines in the institutional sector that were spurred on primarily by a decrease in healthcare projects when compared to last month.
Overall, the Index is up a dramatic 14% when compared to last August’s totals, with an additional 16% increase in the commercial component and 10% rise in the institutional sector being recorded year-over-year.
The Index recorded a total of 26 projects numbering $100 million or more, led by Juan Gabriel Moreno Architects/HOK’s $400 million office towers project in the West Loop of Chicago, the forthcoming $300 million Sungate Logistics Park in Florida, and $360 million Scripps Mercy Hospital expansion in San Diego.
“In spite of weak institutional planning activity, the Momentum Index remained elevated in August, just a notch below July’s 14-year high. This indicates continued confidence from owners and developers that nonresidential building projects will be realized in the coming year,” Sarah Martin, a senior economist for Dodge Construction Network, said in a media statement. “Weaker economic conditions and rising interest rates, however, may grind down overall consumer and business confidence as we move into 2023 — translating into fewer nonresidential building projects breaking ground.”
The DCN shares that the new numbers are “promising” to the industry, which has seen sustained commercial growth as Q4 and the new year approach.
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