The Dodge Momentum Index (DMI) continued to steadily rise in October, with a 9.6% boost to 199.7 from the revised September reading of 182.2. This increase was driven by a 13% and a 2.9% rise in the commercial building and institutional building components, respectively. 

As detailed by Dodge Construction Network, commercial planning was buoyed by an increase in office and hotel projects. Institutional planning was more varied, however, as it saw growth in recreational and education projects but also experienced declines in healthcare and public planning projects. On a year-over-year basis, the DMI was 28% higher compared to October 2021, with commercial planning up 29% and institutional planning 25% higher. 

15 projects with a value of $100 million or more entered planning in October, with the leading commercial projects being a $206 million expansion to a resort in Henderson, Nevada, and the second phase of a $180 million office tower project in Omaha, Nebraska. Institutional planning was led by a $500 million lab and office complex in Philadelphia and a $294 million laboratory complex in San Carlos, California. 

“The sustained upward trajectory in the Momentum Index shows optimism from owners and developers that projects will continue to move forward, even with rising concerns of an economic recession,” said Dodge Construction Network senior economist Sarah Martin. “Specific nonresidential segments, such as data centers and life science laboratories, have thrived in 2022 and continue to support strength in planning activity. As we move into next year, however, labor and supply shortages, high material costs and high interest rates will likely temper planning activity back to a more moderate pace.”