Dodge Momentum Index Drops in August

Dodge Data & Analytics
September 10, 2018

Nonresidential building projects in planning dropped 2.9 percent, according to the Dodge Momentum Index, compiled by Dodge Data & Analytics. 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 commercial component experienced a more significant drop than the headline index, falling 6.1 percent from July. The decrease bookends the component’s robust trajectory, which has increased 25 percent from January to July. Analysts attribute the rise to improved business confidence, and they argue that August’s drop does not signal the end to an overall trend that “remains positive, fueled by strong economic growth and still-healthy real estate fundamentals."