The Dodge Momentum Index (DMI) for July has improved for the second consecutive month, recording a 7.9% increase to a new score of 216.3. This follows June’s revised increase to 200.5. For the month, commercial planning grew by 6.8%, and institutional planning gained 11.1%.

"While data centers have had an outsized influence on nonresidential planning activity in recent months, more momentum is building across many other major sectors and diversifying the story behind July’s growth," Sarah Martin, Associate Director of Forecasting at Dodge Construction Network, commented. "The potential Fed rate cut in September is becoming increasingly more likely, alongside slower inflation and weaker labor market conditions. This is likely driving owners and developers to remain optimistic about 2025 market conditions and pushing more projects into the planning queue."

The acceleration of data centers nationwide continued to play an important role, as did healthcare facilities. The new DMI is 17% higher than in July 2023. The commercial segment was up 35% from year-ago levels, while the institutional segment was down 14% over the same period. 

The largest commercial projects to enter planning in July were the $483 million Microsoft SAT82 Data Center in Castroville, Texas, followed by the $480 million Yorkville Data Center Campus in Little Rock Township, Illinois. Within the institutional sector, the largest projects that entered planning were the $325 million UCSF Children’s Hospital renovation in Oakland, California, and the $278 million Memorial Hermann Cypress Hospital expansion in Cypress, Texas.

Our recent survey of architects' opinions on the current business climate and subsequent factors behind the architecture industry's economic slowdown are also useful resources.