The Dodge Momentum Index, issued by Dodge Construction Network, grew 6.8 percent in June to 225.1.
This is up from a downwardly revised May reading of 210.9.
Across June, commercial planning increased 7.3 percent while institutional planning was up 5.7 percent, according to Dodge.
The Dodge Momentum Index is a monthly measure of the value of nonresidential building projects entering the planning stage. According to Dodge, the index has been shown to lead construction spending for nonresidential buildings by a full year.
“Nonresidential planning steadily improved in June, alongside strength in warehouse, recreational and data center planning,” says Sarah Martin, associate director of forecasting at Dodge Construction Network. “Planning momentum in other key sectors – like education, hotels and retail stores – was more subdued. Expectations for weaker consumer spending and travel demand, as well as volatility around funding, are likely contributing to the weaker momentum of projects entering the planning queue for those sectors.”
Warehouse activity gained substantive momentum in June, and data center planning levels remain robust. On the institutional side, large recreational projects helped to drive a month-over-month gain, while momentum in health care planning continued to accelerate.
In June, the momentum index was up 20 percent compared to year-ago levels. The commercial segment was up 11 percent from June 2024, and the institutional segment was up 46 percent after a weak June last year.
If all data center projects between 2023 and 2025 are excluded, Dodge says commercial planning would be up 12 percent from year-ago levels and the entire momentum index would be up 23 percent.
Projects in planning
A total of 40 projects, valued at $100 million or more, entered the planning phase throughout June.
The largest commercial projects were the $500 million Meadow Brook Technology Park data center campus in Middletown, Virginia, the $300 million Project Blue data center (Phase 3) in Tucson, Arizona, and the $300 million Data City data center in Laredo, Texas.
The largest institutional projects to enter planning were the $340 million Cleveland Clinic Avon Campus expansion in Avon, Ohio, the $150 million McKinney Amphitheatre Building (Phase 2) in McKinney, Texas, and the $135 million Harold Simmons West Overlook Park buildings in Dallas.
Related: Nonresidential gains thrust construction starts upward in May
