Dodge Momentum Index hits a 19-month high in July

The DMI tracks the value of nonresidential construction projects entering the planning stages. It typically leads construction spending by about 12 months.

“While data centers have had an outsized influence on nonresidential planning activity in recent months, more momentum is building across many other major sectors and diversifying the story behind July’s growth,” said Sarah Martin, associate director of forecasting at Dodge.

The increased prospect of Fed rate cut in September and slower inflation was “driving owners and developers to remain optimistic about 2025 market conditions and pushing more projects into the planning queue,” Martin added.

The commercial building index was up 6.8% month over month (m/m) in July and up 35% vs. July 2023. While growth was widespread across all segments, the network noted that data centers were still a driving force of growth. Retail planning, though, has also been steadily accelerating over the past eight months.

Institutional planning jumped 11.1% higher in July from June, with healthcare the primary driver of this month’s expansion. Despite the m/m gain, the segment was down 14% vs. year-ago levels.

A total of 23 projects valued at $100 million or more entered planning throughout the month of June, DCN said.