The Dodge Momentum Index rose 7% in May to 176.2, up from the revised April reading of 165.2. The institutional component of the Index rose 9% and commercial planning rose 6%.

May’s increase pushed the level of planning above the most recent cyclical high set in November 2021. Last month, commercial planning was led by an increase in office and hotel projects. Institutional developments were driven by an increase in education and healthcare projects entering planning. The Index is 17% higher in May 2022 compared to the same period in 2021, with commercial planning up 24% and institutional planning 8% higher than a year ago. 

A total of 19 projects with a value of $100 million or more entered planning in May. The leading commercial projects were the $333 million Bitcoin Mining Facility in Corsicana, Texas and the $300 million Gun Lake Hotel and Resort in Wayland, Michigan. The leading institutional projects were the $250 million Drexel University life sciences building in Philadelphia and the $160 million Colorado Research Exchange life sciences campus in Broomfield, Colorado.

Planned nonresidential building projects continue to rise, even amidst heightened interest rates and the threat of recession. As noted by Dodge Construction Network, this, combined with higher prices and labor shortages, may result in projects breaking ground later in 2022 or early 2023. However, the trajectory of planning indicates that the construction sector will be able to withstand a potential economic slowdown.