A new report by Dodge Construction Network has revealed that the Dodge Momentum Index (DMI) fell 8.4% in January to 201.5 from the revised December reading of 220.0. Last month, the commercial component of the DMI fell 10.0%, and the institutional component decreased by 4.7%. 

The weakness in commercial planning was due to declines across office, warehouse, retail, and hotel activity. Decreases in education and amusement projects drove down institutional planning, which negated gains in healthcare and public planning. However, on a year-over-year basis, the DMI is 32% higher than in January 2022. The commercial component is up 40%, and the institutional component is 16% higher.

“The Dodge Momentum Index weakened in January, after 10 consecutive months of gains. While planning activity slowed, the Index remains elevated, and the volume of projects remains steady,” said Sarah Martin, Associate Director of Forecasting for Dodge Construction Network. “After such strong growth in 2022, we expect the Index to work its way back towards historical norms this year, in tandem with weaker economic growth. Overall, levels of planning activity remained comparatively strong over the month — which bodes well for the construction sector.”

A total of 26 projects valued at $100 million or more entered planning in January. The leading commercial projects included the $325 million Westfield Data Center in Westfield, Massachusetts, and the $275 million Illinois Medical District Data Center in Chicago. Institutional projects were led by the $315 million USC Discovery and Translational Hub laboratory building in Los Angeles, and the $211 million Granary Lab and Office Building in Salt Lake City.