The latest Dodge Momentum Index (DMI) has posted an increase of 3% for December to a new total of 186.6, showing a marked improvement over November’s revised figure of 181.5. 

For the month, commercial planning grew 1.0%, and institutional planning improved 6.1%. Hotels and data centers were the primary drivers of the sector, while the institutional sector was propelled by healthcare and public buildings. Overall, the commercial sector was down 9% from 2022, while the institutional sector was up 14% over the same time period.

“The Momentum Index ended the year 11% below the November 2022 peak, ultimately stabilizing as the year progressed. Regardless, the DMI averaged a reading of 184.3 in 2023, hitting levels of activity that haven’t been recorded since 2008,” Sarah Martin, the associate director of forecasting for Dodge Construction Network, said in a statement. “While ongoing labor and construction cost issues will persist in 2024, a substantive amount of projects are sitting in the planning queue and will support construction spending going into 2025.”

A total of 23 projects valued at $100 million or more entered planning in December, with six being valued at over $400 million. The largest commercial projects include the $500 million Universal Theme Park Kids Resort and Hotel in Texas and the $400 million Dog River Industrial Park in Alabama. The largest institutional projects include a pair of $400 million buildings for the Mayo Clinic in Rochester, Minnesota.