August 11, 2025
Construction Momentum Surges 21% in July
$400+ million projects get rolling in Pennsylvania, North Carolina and Arizona
Nonresidential construction planning increased significantly in July, with the Dodge Momentum Index surging an impressive 20.8% to reach 280.4, according to data from Dodge Construction Network. This dramatic jump represents record-breaking activity as developers finally moved forward with projects after months of hesitation due to tariff uncertainty.
Commercial planning drove substantial growth at 14.2%, but it was the institutional sector that truly stole the show with a remarkable 35.1% increase. The surge was fueled by a flood of major projects entering the planning pipeline - from massive data centers and research facilities to hospital expansions and service plazas.
The Dodge Momentum Index (DMI) tracks the dollar value of nonresidential building projects as they enter the planning phase, serving as a leading indicator that typically precedes actual construction spending by approximately one year. This makes it a valuable tool for forecasting construction industry trends and economic activity.
DMI Growth
Commercial Planning
Institutional Planning
Market Analysis
"Planning data skyrocketed in the month of July on the back of several large projects entering the planning queue for data centers, research & development labs, hospitals and service stations. Combined with more organic momentum in planning for hotels, warehouses, and recreational projects, cumulative activity drove record highs in the DMI."
Sector Performance Highlights
Record Growth
- Data centers and warehouses led commercial momentum
- MassDOT entered $700M+ in service plaza projects
- Hospital Corporation of America announced major hospital projects
- Education, healthcare, and public projects surged
Year-over-Year Performance
Major Projects Entering Planning ($100M+)
After months of wait-and-see due to tariff uncertainty, owners and developers have begun to move forward with projects and assumed higher costs for them. As economic and fiscal uncertainty remains prevalent, volatility in planning activity will remain elevated. If all data center projects between 2023 and 2025 are excluded, commercial planning would be up 26% from year-ago levels, driven by an uptick in warehouse planning.
Data Source: Dodge Construction Network
The DMI is a monthly measure of the value of nonresidential building projects entering the planning stage, which has been shown to lead construction spending for nonresidential buildings by a full year.
