September 10, 2025
Construction Planning Grows 8% in August
Large $375 million projects get rolling in Texas, Colorado and Montana
Nonresidential construction planning continued its upward trajectory in August, with the Dodge Momentum Index climbing 7.5% to reach 301.4, according to data from Dodge Construction Network. This sustained growth represents another milestone as the index reaches new peaks, driven by developers' willingness to move forward with projects despite higher costs from tariff concerns.
Commercial planning led with robust growth at 8.7%, while the institutional sector maintained steady gains with a 5.4% increase. The momentum was bolstered by significant activity across data centers, warehouses, hotels, and a surge of major detention and court building projects entering the planning pipeline.
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 to 18 months. This makes it a valuable tool for forecasting construction industry trends and economic activity.
DMI Growth
Commercial Planning
Institutional Planning
Market Analysis
"The DMI continues to point to stronger construction activity in late 2026 or early 2027 within specific sectors. Because this Index uses a three-month moving average, last month's strong activity sustained this month's positive gains despite a pullback in the raw, unadjusted data. Following months of uncertainty caused by tariff concerns, owners and developers have started progressing with projects while accepting higher costs."
Sector Performance Highlights
Sustained Growth
- Data centers, warehouses, and hotels led commercial momentum
- Parking garages & service stations experienced steady gains
- Education and healthcare planning remained positive
- Detention facilities and court buildings drove public sector growth
Year-over-Year Performance
Major Projects Entering Planning ($100M+)
Given the persistent economic and fiscal uncertainty, volatility in planning activity will remain high. On the commercial side, all sectors sustained momentum throughout August, notably led by strength in data centers, warehouses and hotels. 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.
Year-to-Date Performance
Data Source: Dodge Construction Network
The DMI is a monthly measure based on the three-month moving value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year to 18 months.
