Dodge Momentum Index Falls in May

Dodge Data & Analytics
June 7, 2019

The Dodge Momentum Index fell 1.0 percent in May to 141.0 (2000=100) from the revised April reading of 142.4. The Momentum Index, issued by Dodge Data & Analytics, 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 May decline for the Momentum Index was due entirely to a 6.9 percent drop by its commercial component, as its institutional component rose 8.1 percent.

The Momentum Index continues to settle back from the most recent highs achieved last summer. On a year-over-year basis, the Momentum Index in May was 9.2 percent lower than a year ago, with a 16 percent drop by its commercial component outweighing a 1.8 percent gain by its institutional component. Although the trend for the overall Momentum Index is downward, so far the pullback has been measured, say analysts, suggesting that there remains enough nonresidential building projects in the pipeline to support near term stability for construction activity. This is particularly true for the institutional side of nonresidential building.