Nonresidential building planning exercise declined in November, marking the third consecutive month of cooling, based on Dodge Development Community.
The Dodge Momentum Index, a benchmark that measures nonresidential building planning, dropped 2.3% in November. A 4.6% drop in business exercise triggered most of that lower, whereas a 2.5% improve in institutional planning partially offset the decline, based on the report.
Slower planning for information facilities, places of work, warehouses and retail initiatives contributed to the business sector’s downturn in November, whereas training initiatives fueled institutional progress. The institutional section has now grown in 5 of the previous six months, based on Dodge.
“All through 2024, we’ve seen strong progress in nonresidential planning exercise — however labor shortages and excessive building prices have prevented these initiatives from shifting by the planning course of at a traditional tempo,” stated Sarah Martin, affiliate director of forecasting at Dodge Development Community.
“Uncertainty over new tariff and immigration insurance policies below President-elect Trump’s administration may generate some pause with builders, though it’s a bit too early to inform if that’s the first issue right here.”
From a year-over-year perspective, the index stays 12% larger than November 2023 ranges. Business planning elevated 13% over that point interval, whereas institutional planning jumped 8%.
