Dodge Momentum Index Increases in June

Dodge Data & Analytics
July 15, 2019

The Dodge Momentum Index moved 4.0 percent higher in June to 146.1 (2000=100) from the revised May reading of 140.5. 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 June increase for the Momentum Index reflected a 6.1 percent jump by its institutional component and a 2.4 percent gain by its commercial component.

Despite the improvement shown by the Momentum Index in June, planning for commercial and institutional building projects has clearly stepped back from the torrid pace set during the first half of 2018, say Dodge analysts. The average of the overall Momentum Index through the first six months of 2019 was 4.3 percent lower than the same period a year ago, with the commercial component down 5.2 percent. June’s improvement does affirm that the broader pullback by the Momentum Index remains gradual, and that there are still ample projects at the planning stage to maintain stability for construction spending in the near term.