“The potential Fed rate cut in September is becoming increasingly more likely, alongside slower inflation and weaker labor market conditions,” said Sarah Martin, associate director of forecasting at Dodge Construction Network, in the release. “This is likely driving owners and developers to remain optimistic about 2025 market conditions and pushing more projects into the planning queue.” The continued growth in construction planning — which leads actual construction spending by 12 months — has come as renewed fears sprouted this month that the U.S. economy may be sinking into recession. In contrast to anxiety over last week’s soft jobs report, the planning report provides evidence that owners and developers are simply waiting for lower rates to deploy capital. Data center projects, for example, continue to have an outsized influence on nonresidential planning activity, but momentum is building across many other major sectors as well, said Martin in the release.
https://www.constructiondive.com/news/construction-planning-recession-fears-july-dodge-momentum-index/723772/