In February, the Dodge Momentum Index increased 4% to 158.2 from the revised January reading of 151.9, marking a rebound from three consecutive monthly declines that followed a 14-year high in October 2021. Last month, institutional planning rose 9% and commercial planning moved 1% higher.

The Dodge Construction Network attributes much of February’s gain to the sizable jump in the institutional sectors, in which more education and healthcare projects entered planning. Gains in commercial planning are due to office and warehouse projects. Compared to February 2021, the overall Momentum Index was 11% higher during the same time this year. Institutional planning was up 37%, while commercial planning was down 1% on a year-over-year basis. 

A total of 22 projects with a value of $100 million or more entered planning in February. The leading institutional projects were a $500 million first phase of the OC Vibe recreation and mixed-use space in Anaheim, California and the $299 million Kaiser Roseville Medical Center in Roseville, California. The leading commercial projects were the $500 million Potomac Technology Park data center in Manassas, Virginia and a $175 million Chick-fil-A refrigerated warehouse in Hutchins, Texas. 

According to the Dodge Construction Network, February’s increase indicates that the construction sector is staying afloat given ongoing material price surges and labor shortages, along with other unique issues brought by the pandemic. As the number of projects in planning increases, a more pronounced recovery in construction starts will take shape.