The Dodge Momentum Index (DMI) increased 2.4% in September to 288.0, up from a revised August reading of 281.3, according to Dodge Construction Network. Institutional planning led the increase, rising 9.4%, while commercial planning declined 1.3%.
“Institutional planning led this month’s growth, alongside a strong uptick in education, healthcare, and government building planning,” said Sarah Martin, Director of Economic Research at Dodge Construction Network. “Milder growth was seen across several other commercial sectors, as well. As steady growth resumes across most nonresidential sectors, construction spending in those sectors should see a marginally stronger late 2027.”
Commercial planning improved for retail stores, hotels, office buildings and parking garages, but those gains were offset by slower activity in data center and warehouse projects. Institutional planning benefited from strong growth in education, healthcare and government facilities.
Compared to September 2025, the DMI was up 3.7%, with institutional planning increasing 17.2% and commercial planning declining 3.0%. Excluding data centers, commercial planning was down 14.9% year-over-year.
During September, 45 projects valued at $100 million or more entered planning. Major commercial projects included the $480 million Project North data center in Pennsylvania and two $473 million data centers in Texas. Leading institutional projects included the $346 million Duke Raleigh Hospital addition in North Carolina and the $325 million Spartanburg Regional Heart & Vascular Hospital in South Carolina.
The DMI tracks nonresidential building projects entering planning and is considered a leading indicator of construction spending approximately 12 to 18 months ahead.
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