Dodge Momentum Index Takes a Dip
The Dodge Momentum Index fell 7 percent in March to 117.4. The index measures initial reports of nonresidential building projects in planning, a leading indicator of nonresidential construction. The decline in March is the first setback for the Index following three months of gains.
Over the last 12 months the Index has been particularly volatile, increasing in seven months and dropping in five, mirroring the saw tooth pattern of growth in the overall economy. The March decline for the Index was due primarily to a steep 15% drop by institutional planning, while commercial planning fell less than one percent. Despite its stark retreat, institutional planning activity is 7% above its level in March 2015, while commercial planning is down 4% from last year. The overall Index is essentially even with its year-ago level.
In March, seven projects entered planning with a value that exceeded $100 million. For the commercial building sector, the leading projects were a $500 million shopping center in Los Angeles, CA, and a $113 million mixed-use building in Maspeth, NY. For the institutional building sector, the leading projects were a $140 million hospital in Norfolk, VA, and a $135 million hospital in Santa Fe, NM.
Dodge Data & Analytics is an early and accurate leading indicator of future construction spending. Importantly, changes in the Dodge nonresidential new planning data lead changes in Commerce spending put in place by twelve months. Find the company's website here.
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