Dodge Momentum Index Points to Stronger Construction Activity

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The Dodge Momentum Index increased 7.5% in August to 301.4, the Dodge Construction Network reported. Over the month, commercial planning expanded 8.7% while institutional planning grew 5.4%.

Year-to-date, the index–a monthly measure based on the three-month moving value of nonresidential building projects going into planning–is up 30% from the average reading over the same period in 2024. The planning stage generally leads construction spending for nonresidential buildings by one year to 18 months.

“The DMI continues to point to stronger construction activity in late 2026 or early 2027 within specific sectors,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “Following months of uncertainty caused by tariff concerns, owners and developers have started progressing with projects while accepting higher costs. Given the persistent economic and fiscal uncertainty, volatility in planning activity will remain high.”

On the commercial side, all sectors sustained momentum over the month, led by strength in data centers, warehouses and hotels. On the institutional side, education and healthcare planning decelerated from last month’s growth but remained positive.

August’s DMI reading was up 51% compared to year-ago levels. The commercial segment was up 38% from August 2024 and the institutional segment was up 84% over the same period. If all data center projects between 2023 and 2025 are excluded, commercial planning would still be up 38% from year-ago levels driven by an uptick in warehouse and automotive planning.