News & Press: Regional News

Dodge Momentum Index Moves Lower in August

Tuesday, September 10, 2019  
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constructionbusinessowner.com

September 9, 2019

 

Construction, Site, Build, Construction Work

 

The Dodge Momentum Index dropped 1.3% from July to August to 137.8 (2000=100) from the revised August reading of 139.6. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. The drop in September was the result of a 16.6% decline in the institutional component offsetting a 9.1% gain in the commercial component.

On a year-over-year basis, the overall Momentum Index is 10.3% below August 2018, suggesting that construction spending will be settling back as the year progresses. However, most of the decline occurred in 2018—the Momentum Index has lost only 1.8% since the beginning of 2019, indicating that while construction activity will ease it is not in a freefall. On a year-over-year basis, the institutional component is 22.5% lower, while the commercial component is down 2.4%.

In August, there were 11 projects, each with a value of $100 million or more, that entered planning. The leading commercial projects were a $215 million office building in Mount Juliet, Tennessee, and a $200 million Amazon fulfillment center in Memphis, Tennessee. The leading institutional projects were a $235 million hospital tower in Salem, Oregon, and a $150 million dormitory at the University of South Carolina in Columbia, South Carolina.


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