The Dodge Momentum Index, issued by Dodge Construction Network, grew to 225.7 in January, up 5.6 percent from the revised December reading of 213.6.
The momentum index is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year.
Over the month, commercial planning increased 4.2 percent while institutional planning improved 8.7 percent.
“Nonresidential planning activity saw diversified growth in January, with every vertical experiencing positive momentum,” says Sarah Martin, associate director of forecasting at Dodge Construction Network. “Uncertainty over fiscal policies, ongoing labor shortages and elevated construction costs will continue to be headwinds to the construction sector. However, further monetary easing and the sizable number of projects in planning should support construction spending in the back half of the year.”
Index breakdown
On the commercial side, data center, traditional office building and warehouse planning led January’s gains. Education and healthcare planning supported the institutional portion, especially on the hospital side.
In January, the momentum index was up 26 percent compared to a year earlier. The commercial segment was up 37 percent from January 2024, while the institutional segment was up 9 percent over the same period.
The influence of data centers on the momentum index this year remains substantial. If all data center projects between 2023 and 2025 were removed, commercial planning would be up 13 percent from year-ago levels, and the entire momentum index would be up 11 percent.
Specific projects
A total of 33 projects valued at $100 million or more entered planning throughout January.
The largest commercial projects included the $500 million Amazon Data Center in Jeffersonville, Ohio, and Phase 1 of the Hunter’s Ridge Data Center in McLean, Virginia.
The largest institutional projects to enter planning were the $407 million Memorial Hospital expansion in Colorado Springs, Colorado, and the $300 million AdventHealth Hospital expansion in Parker, Colorado.
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