Dodge Momentum Index Starts Year Strong with +5.6% Increase in January

The Dodge Momentum Index (DMI), published monthly  by Dodge Construction Network, grew +5.6% in January to 225.7 (2000=100) from the revised December reading of 213.6 points. Over the month, commercial planning increased +4.2% while institutional planning improved +8.7%.

DMI is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year. 

“Nonresidential planning activity saw diversified growth in January, with every vertical experiencing positive momentum,” said Sarah Martin, associate director of forecasting at Dodge Construction Network, in the press release. “Uncertainty over fiscal policies, ongoing labor shortages and elevated construction costs will continue to be headwinds to the construction sector. However, further monetary easing and the sizable number of projects in planning should support construction spending in the back half of the year.” 

On the commercial side, data center, traditional office building, and warehouse planning led this month’s gains. Education and healthcare planning supported the institutional portion, especially on the hospital side. In January, the DMI was up +26% when compared to year-ago levels. The commercial segment was up +37% from Jan. 2024, while the institutional segment was up +9% over the same period. The influence of data centers on the DMI this year remains substantial. If Dodge removed all data center projects between 2023 and 2025, commercial planning would be up +13% from year-ago levels, and the entire DMI would be up +11%.

A total of 33 projects valued at $100 million or more entered planning throughout January. The largest commercial projects included the $500-million Amazon Data Center in Jeffersonville, OH, and Phase 1 of the Hunter’s Ridge Data Center in Mclean, VA.
The largest institutional projects to enter planning were the $407-million Memorial Hospital expansion in Colorado Springs, CO, and the $300-million AdventHealth Hospital expansion in Parker, CO.