Dodge Momentum Index rises 3.2 percent in December
The Dodge Momentum Index rebounded in December, rising 3.2 percent from its November levels, according to a Jan. 8 release from McGraw-Hill Construction. The Momentum Index is a monthly measure of the initial report for nonresidential building projects in planning, shown to lead construction spending for nonresidential buildings by a full year.
The December gain brought the Momentum Index to 94.9 (2000=100), up from November's revised 91.9, according to the release. After showing a hesitant upward trend during the first seven months of 2012, the Momentum Index settled back from August through October, and then stabilized in November. This coincided with the economic and political uncertainty that dampened investment during that time. The December rebound for the Momentum Index brings it back close to the 95.4 reached in July, which was the highest reading reported during 2012, according to the release.