Dodge Momentum Index Moves Higher in May

Construction Dive/Dodge Data and Analytics
June 13, 2016

The Dodge Momentum Index rose 2.4 percent in May to 119.4 from its revised April reading of 116.6, according to Dodge Data and Analytics. The Momentum Index is a monthly measure of the initial report for nonresidential building projects in planning. The increase for the Index in May was due to a 6.5 percent gain for projects entering planning in the commercial sector, which more than offset a 3.4 percent decline for such projects in the institutional sector. May’s increase places the overall Index 3.6 percent higher than its year-ago level, suggesting further growth in construction activity in 2016 despite the subdued first quarter GDP report and signs that lending standards are beginning to tighten for commercial projects. 

The commercial portion of the Index rose in May for the second consecutive month and is at its highest level since September 2015. This recent improvement for commercial projects provides some evidence that construction plans are moving forward after the severe drop-off in planning that occurred with the financial market instability in late 2015.