The latest Dodge Momentum Index (DMI) figures for September have shown decreases equal to a 4% drop to a new sore of 208.6 after a revised August reading of 217.7.

For the month, commercial planning contracted by 7.8% and institutional planning improved by 5.2%. The new DMI was 21% higher than in September of 2023. Planning in the commercial segment was up 31% from year-ago levels, while the institutional sector was up 4% over the same period.  

"Despite this month’s decline, the Dodge Momentum Index remains at very robust levels," Sarah Martin, the associate director of forecasting at the Dodge Construction Network said in a statement. "A surge in data center activity drove much of the recent rapid growth in the DMI – so as planning for that sector moderated over the month, overall commercial planning fell back. By mid-2025, the Fed’s rate cuts should spur planning projects to reach groundbreaking more quickly – leading to stronger nonresidential activity as 2025 progresses."

The largest commercial projects recorded were a $390 million data center in Minnesota and the first two phases of the SNA Data Center in Cedar Rapids, Iowa, which are valued at $375 million per phase. The largest institutional projects to enter planning were a $300 million lab facility in Albuquerque and the $215 million phase 2 of the Kentucky Exposition Center redevelopment in Louisville. 

This ends a three-month streak of consecutive increases that began in June. We recently surveyed architects on the current business climate and broke down the subsequent factors behind the architecture industry's economic slowdown before the Fed's decision to cut interest rates for the first time since the pandemic kicked in on September 18th.