The Dodge Momentum Index (DMI) increased 2.7% in May to 179.0 from a revised April reading of 174.3. Dodge Construction Network’s (DCN) monthly index reports that commercial planning grew by 5.5%, while institutional planning slowed by 3.4%.

According to Sarah Martin, DCN’s associate director of forecasting, the overall DMI remains 40% higher than May 2019 levels, “indicating a steady pipeline of construction projects that will be ready to break ground through mid-2025.”

The DMI is a monthly measure of the value of nonresidential building projects entering planning. It has been shown to lead construction spending for nonresidential buildings by a full year.

“Owners and developers are gaining confidence in 2025 market conditions, alongside more stable and predictable interest rates–spurring stronger commercial activity over the month,” says Martin. “Conversely, after last year’s growth, institutional planning is decelerating, as high material costs, labor shortages and elevated interest rates seep into planning decisions.”

DCN data shows that data center planning supported growth in the commercial sector. Retail planning has continued to grow over the past six months. For the third consecutive month, healthcare and education planning activity slowed. The DMI was 7% lower in May than year-ago levels. The commercial segment was up 8% from May 2023, while the institutional segment was down 32%.

Nineteen projects valued at $100 million or more entered planning in May.

The largest commercial projects included the $500 million renovation of the former Mirage Hotel to a Hard Rock Hotel and Casino in Las Vegas. The next two largest commercial projects to enter planning included the $495 million Prime Data Center in Fort Worth, Texas, and the $481 million Prime Data Center in Garland, Texas. The largest institutional projects to enter planning were the $377 million renovation project to Neyland Stadium at the University of Tennessee and the $350 million Woodland Research and Technology Office in Woodland, California.

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