Dodge Momentum Index Rises in November
The Dodge Momentum Index rose 2.8 percent in November compared to the previous month, according to McGraw Hill Construction, a division of McGraw Hill Financial, as reported in a Dec. 6 release. The Momentum Index is a monthly measure of the first report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year.
November's increase brought the Momentum Index to 117.9 (2000=100), as it regained upward movement after pausing in October, according to the release. The latest month was the highest reading for the Momentum Index since March 2009, although the current level is still well below the peak readings back in 2007 (when the Momentum Index averaged 183). The November upturn in plans for new construction may be a sign that October's uncertainty over the budget and debt ceiling impasse is now easing, at least until those issues are raised again in January and February, according to the release.