The latest data from the US has boosted confidence in country’s construction sector due to an increase in planning activity.
The Dodge Construction Network released the Dodge Momentum Index for May. Over that month, the commercial planning grew 0.8 per cent while institutional planning improved 10.5 per cent.
The DMI is a monthly measure of the value of nonresidential building projects entering the planning stage, which has been shown to lead construction spending for nonresidential buildings by a full year.
“Nonresidential planning continued to accelerate in May, primarily driven by strong project activity on the institutional side of the DMI,” Dodge Construction Network associate director of forecasting Sarah Martin said.
“Planning momentum moderately improved on the commercial side as well, following subdued growth in that sector over the last few months – outside of data centres. Increased economic and policy uncertainty will continue to contribute to heightened volatility in the project data – but in aggregate, planning activity is on steady footing.”
According to the index, key movers included warehouse and hotel planning while office and retail planning remained flat. Data centres returned to previously seen levels following a strong month in April which further constrained commercial planning. Planning for education and recreational projects was also important.
The DMI was up by 24 per cent in May compared to the same period last year. Further increases were seen in the commercial segment (15 per cent) and the institutional segment (47 per cent).
According to DCN, 33 projects valued at $100 million or more entered planning throughout May. This included the $486 million Evolve Energy Partners Data Centre in Warrenton, Missouri, the $366 million LEGO Warehouse and Distribution Facility in Prince George, Virginia, and the $330 million Summit Crossing Data Centre (Building 2) in Fredericksburg, Virginia. The largest projects were the $500 million renovations to the Honda Centre in Anaheim, California, the $238 million phase 2 of the Sterling Bay Pacific Centre research and development building in San Diego, California, and the $201 million patient tower at Berkeley Medical Centre in Martinsburg, West Virginia.
