Dodge Momentum Index Rises in September

Dodge Data & Analytics
October 14, 2019
COMMERCIAL, RETAIL, FABRICATION

The Dodge Momentum Index moved 4.1 percent higher in September to 143.6 (2000=100) from the revised August reading of 137.9. 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 gain in September was due entirely to an 8.9 percent increase in the commercial component, while the institutional component fell 4.8 percent, say analysts.

For the third quarter, the overall Momentum Index averaged 140.1, a scant increase of 0.7 percent from its average in the previous quarter. Compared to the third quarter of 2018, however, the Momentum Index is 8.6 percent lower with the commercial component 3.7 percent lower than a year ago and the institutional component down 16.2 percent. Although the dollar volume of projects in planning is certainly lower than it was a year ago, the index has moved more sideways than downward over the past two quarters.