In December, the Dodge Momentum Index (DMI) improved 6.6% to 222.2 from the revised November reading of 208.3. The DMI’s commercial component rose 8.4% and the institutional component increased 2.7% last month.

Commercial planning in December was driven by increases across office, warehouse, retail, and hotel planning. Growth in institutional planning is attributed to recreation and public building, while education and healthcare planning remained flat. On a year-over-year basis, the DMI was 40% higher than in December 2021, with commercial planning up 51% and institutional planning 20% higher. 

“One of the key construction storylines for 2022 was the return of enthusiasm and optimism in prospects for nonresidential growth,” stated Richard Branch, chief economist for Dodge Construction Network. “While some of that will likely erode in 2023 as economic growth wanes, increased demand for some building types like data centers, labs, and healthcare buildings will provide a solid floor for the construction sector.”

A total of 15 projects with values of $100 million or more entered planning in December. The leading commercial projects were a $500 million Vantage Data Center in Sterling, Virginia, and a $183 million mixed-used building in Chicago. Institutional projects were led by the $400 million Acute Neuropsychiatric Hospital in Los Angeles and a $185 million life sciences building in Philadelphia.