The new Dodge Momentum Index (DMI) for the month of November decreased by 2.3% to a new score of 191.5 from the revised October reading of 196.0. Over the month, commercial planning was down 4.6% while institutional planning improved by 2.5%.  

The November DMI is 12% higher than year-ago levels. The commercial segment was up 13% from November 2023, while the institutional segment was up 8% over the same period. 

The DCN also shares: "The influence of data centers on the DMI this year has been substantial. If we remove all data center projects in 2023 and 2024, commercial planning would be down 6% from year-ago levels, and the entire DMI would be down 1%."

Sarah Martin, the associate director of forecasting at Dodge Construction Network, stated: "Throughout 2024, we’ve seen robust growth in nonresidential planning activity – but labor shortages and high construction costs have prevented those projects from moving through the planning process at a normal pace. The current backlog may be constraining demand for commercial planning in the short-term."

"Uncertainty over new tariff and immigration policies under President-elect Trump’s administration may also generate some pause with developers, although it’s a bit too early to tell if that’s the primary factor here. Overall, easing monetary policy will help alleviate the backlog of projects in the planning queue throughout 2025 and spur more demand for projects in the coming months," Martin continued.

A total of 17 projects valued at $100 million or more entered planning throughout November. The group was led by a $465 million dormitory project at UC Berkeley and the $350 million new Bally’s Hotel Tower and Casino in Las Vegas. The institutional portion of the DMI has grown in 5 of the last 6 months. Our latest look at the state of the AEC industry in November can be found here.