The Dodge Momentum Index (DMI) continued its decline in June with a 2.5% decrease resulting in a reading of 197.3 from a revised May reading of 202.4. Over the course of last month, the commercial component rose 3.1%, while the institutional component dipped 10.5%.

According to the Dodge Construction Network, commercial planning in June was driven by a boost in data center and hotel planning projects. Institutional planning, however, was pulled back by a dip in education and healthcare activity. Year over year, the DMI is 25% higher than in June 2022, with the commercial and institutional components up 17% and 39% respectively. 

“A deceleration in institutional planning caused the Momentum Index to decrease in June,” said Dodge Construction Network’s associate director of forecasting, Sarah Martin. “Project activity in this segment pulled back from the robust highs of the last three months but continued to dwarf year-ago levels. In contrast, growth in the commercial segment may be fleeting, as the continued elevation in interest rates and increasingly tight lending standards weigh down the sector in the latter half of the year.”

A total of 22 projects valued at $100 million or more entered planning in June. The largest commercial projects included the $335 million Queensbridge Collective Office Tower in Charlotte, North Carolina and the $280 million Old Potomac Church Data Center in Stafford, Virginia. Institutional planning was supported by the $710 million Medford Life Science Park project in Medford, Massachusetts and the $157 million Center of Innovation building in Emeryville, California.