The Dodge Momentum Index (DMI) surged in August, led by an increase in commercial planning along with continued strength in data centers, warehouses and hotels. According to Dodge Construction Network (DCN), the DMI rose by 7.5% in August to 301.4 from a downwardly revised July reading of 279.9.
In August, commercial planning expanded 8.7% while institutional planning grew 5.4%. Year-to-date, the DMI was up 30% from the same period in 2024. The DMI is a monthly measure based on the three-month moving value of nonresidential building projects going into planning. It is shown to lead construction spending for nonresidential buildings by a full year to 18 months.
“The DMI continues to point to stronger construction activity in late 2026 or early 2027 within specific sectors,” notes Sarah Martin, DCN’s associate director of forecasting. “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. Given the persistent economic and fiscal uncertainty, volatility in planning activity will remain high.”
DCN’s data indicates that on a year-to-year basis, the DMI was up 51%, while the commercial segment was up 38% from August 2024, and the institutional segment was up 84% over the same period.
Fifty-one projects valued at $100 million or more entered planning throughout August.
The largest commercial projects included the $500 million Big Sky Data Center Campus and Battery Storage (500 MW) in Billings, Montana, the $360 million Prologis Concorde data center in Sterling, Virginia, and the $347 million Johnston County Government Complex in Smithfield, North Carolina.
The largest institutional projects to enter planning were the $490 million Weld County Judicial Center in Greeley, Colorado, the $375 million dormitory within the Medical Education Training Complex in San Antonio and the $360 million renovation to the Framingham Correctional Institution in Framingham, Massachusetts.