Like other industries, building construction remains wobbly in an uncertain economy. According to one measure, nonresidential construction declined in October.

The Dodge Momentum Index (DMI) is a monthly measure of the value of nonresidential construction projects going into the planning stage. According to the index, the value of planning for nonresidential construction projects decreased by 7.1% in October.

The combined average is a mid-range figure, with specific sectors showing varying degrees of decline. For example, commercial construction planning decreased by 2.9% in the same month, while institutional planning fell by a much larger amount, 15.2%.

On the positive side, the year-to-date DMI is up 35% from the average reading over the same period in 2024, and 54% from October of last year, showing a sustained, long-term upward trend.

However, a greater analysis of these figures is required. Dodge noted that increases in labor and material costs contribute to an increase in project expense, which can contribute to an inflated upward trend. Despite this detail, Dodge expects activity to continue to decelerate, “as macroeconomic risks continue to mount.”

According to Dodge, planning did not contract in all sectors. Planning momentum remained steady for data centers, traditional office buildings and retail stores, and recreational and public building construction planning continues to grow.

The largest projects contributing to the DMI are a $1.5 billion data center project planned for Hamlet, N.C.; two $500 million data center projects in Illinois; a $400 million hospital expansion planned for San Diego; a $198 million hospital expansion in Asheville, N.C.; and a $260 million life sciences park in Philadelphia.

According to Dodge, a total of 45 projects valued at $100 million or more entered into planning throughout October.