Dodge Momentum Index Makes Third Straight Gain in June
The Dodge Momentum Index gained 3.3 percent in June to 128.7, its third consecutive increase following hesitation in February and March, according to McGraw Hill Construction. The Momentum Index 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 Dodge Momentum Index appears to be recovering from the weather-induced softness early in the year. Aided by this recent strengthening, the Momentum Index was a healthy 22.6 percent higher in June than a year earlier. Moreover, the growing volume of projects at the planning stage suggests that nonresidential construction starts should be headed higher over the remainder of the year, according MHC.