Dodge Momentum Index Declines in September

Glass Magazine
October 9, 2017

The Dodge Momentum Index fell in September, moving 8.4 percent lower to 116.4 from the revised August reading of 127.1. The institutional building component fell 11.5 percent from August, while the commercial building component fell 6.1 percent. 

While the overall Momentum Index has lost ground for four consecutive months, this should not be seen, in and of itself, as a predictor of a turn in building markets, according to Dodge Data. Prior to the previous peak of the Momentum Index in January 2008 it had suffered similar significant declines, only to rebound and post strong gains in subsequent months in line with overall economic growth. Similarly, the Momentum Index posted healthy gains from late-2016 through early 2017. Economic growth remains solid, and building market fundamentals are supportive of further growth in construction activity.