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Construction momentum at 12-year high, despite continued challenges

May 11, 2021


The uptick in the institutional sector, which includes healthcare, education, dormitories, recreation facilities and public buildings such as courts and prisons, seems to be driven by longer-term optimism about the country’s overall progress against COVID-19, even as the hurdles that threaten to hinder construction’s emerging recovery remain in the near term.

“The institutional component of the Dodge Momentum Index had posted a long string of declines in the immediate wake of the pandemic as state and local governments grew concerned with the potential for widening budget gaps,” said Richard Branch, Dodge’s chief economist, in an email. “However, since hitting a low in January 2021, institutional planning has risen to levels not seen in over 10 years driven by healthcare, labs, and education projects.”

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