Construction Planning Activity Rose 2.4% in September
Contractors and suppliers should note that institutional project planning surged while commercial project pipelines softened.
Updated on Oct. 8, 2026 in Construction
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The Dodge Momentum Index climbed 2.4 percent in September, reflecting a shift in nonresidential construction planning. This index tracks nonresidential projects entering the early stages of design.
Why it matters
The divergence between institutional growth and commercial decline highlights a pivot in market demand for construction services. Operators in healthcare, education, and government building sectors face increased activity, while those focused on commercial projects face a tighter pipeline.
The overall index reached a level 3.7 percent higher than in September 2025. September saw 45 projects valued at $100 million or more enter planning, including a $480 million data center in Pennsylvania and two data centers in Texas valued at $473 million each.
The details
The index captures nonresidential construction projects as they enter the planning phase, serving as a leading indicator for future building activity. Growth in institutional planning was driven by projects in the education, healthcare, and government sectors. Conversely, the 1.3 percent decline in commercial planning suggests a softening in that segment, though high-value data center projects remain a prominent feature of current activity.
Timeline
The Dodge Momentum Index increased 2.4 percent in September 2026.
The overall index is 3.7 percent above its September 2025 level.
Nonresidential construction spending is expected to show stronger results by late 2027.
Market Landscape
The Dodge Momentum Index acts as a leading indicator for future construction labor and material demand. This month's data updates the pattern of investment, signaling a move toward public infrastructure and institutional expansion over commercial development.
Construction firm owners should prioritize bidding on institutional projects while preparing for a potential slowdown in commercial contracts. Monitor these early-stage planning figures as a guide for labor allocation and equipment procurement cycles through late 2027.
The takeaway
The surge in large-scale institutional planning suggests that government and healthcare sectors will continue to anchor construction demand. Firms should track the entry of $100 million-plus projects into the planning cycle to better forecast medium-term capacity requirements.
Further reading
For broader trends in infrastructure and building demand, see Construction.
Source note: This article includes information reported by Construction Dive.
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