Core Report | February 9, 2024

The Dodge Momentum Index, a leading indicator for construction spending, increased once again in January. The January Dodge Momentum Index came in at 184.1, up slightly from 183.9 in December. This is the highest DMI reading since July but is still below the 199.3 reading from last January. Compared to December, the improvement in institutional planning helped to overcome a slight decline in commercial planning. Slower growth in warehouse planning negatively impacted the commercial portion; while education and healthcare planning helped growth in the institutional side. With lending standards beginning to loosen and the Fed expected to begin cutting rates in the back half of the year, momentum should rebound for commercial activity.