The Dodge Momentum Index hit a 14-year high in June and recorded another 2.9% increase in July. The index now stands at 178.7, up from June’s figure of 173.6.

“Commercial planning in July was led by an increase in data center, office and warehouse projects, while fewer education and healthcare projects drove the institutional component lower,” the latest report reads. “Compared to July 2021, the Momentum Index was 8%. The commercial component was 15% higher, while the institutional component was 3% lower than a year ago.”

The index mentioned 14 projects carrying values of $100 million or more being recorded in July. Among them, new projects in Sacramento, Miami, and suburban D.C. were the biggest commercial heavy hitters. Three institutional projects, including Blair + Mui Dowd’s $500 million Vanderbilt University Medical Center expansion, also topped the $100 million threshold. 

Dodge Construction Network has said it will watch closely to see if the passage of the Federal CHIPS Act could trigger a boom in the high-tech manufacturing sector. It mentioned July's 15% year-to-year increase in commercial projects was due in large part to the uptick in data stores, offices, and warehouse projects, the latter of which is most likely driven by an increase in spec building.

The latest report comes in the midst of mounting recession concerns since May. “The Momentum Index has yet to show signs of stress as recession fears mount. This shows that developers and owners remain confident that nonresidential building projects will weather the storm of higher interest rates and a slowing economy,” Dodge Construction Network's chief economist Richard Branch said, “Whether this can be sustained over the medium term remains a key question that will ultimately dictate the pattern for construction starts in 2023.”