Construction Planning Activity Jumps Ahead of Fed Meeting

The Dodge Momentum Index, a benchmark that measures nonresidential construction planning, increased 2.9% in August due to broad-based growth in both commercial and institutional sectors, according to Dodge Construction Network.

Commercial planning, such as office, industrial and hotel projects, jumped 1.9% in August, while institutional planning, which includes education, life sciences and healthcare projects, surged 5.7% over the month.

“With the Fed’s September rate cut all but finalized, the influence of selective lending standards and inflation should moderate next year, alongside a modest upgrade to consumer demand,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “As a result, stronger planning activity was widespread in August, with most nonresidential sectors seeing growth.”

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