The Dodge Momentum Index dropped 1.3% from July to August to 137.8 (2000=100) from the revised August reading of 139.6. 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 drop in September was the result of a 16.6% decline in the institutional component offsetting a 9.1% gain in the commercial component.
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Dodge Momentum Index (Graphic: Business Wire)
On a year-over-year basis, the overall Momentum Index is 10.3% below August 2018, suggesting that construction spending will be settling back as the year progresses. However, most of the decline occurred in 2018 – the Momentum Index has lost only 1.8% since the beginning of 2019, indicating that while construction activity will ease it is not in a freefall. On a year-over-year basis, the institutional component is 22.5% lower, while the commercial component is down 2.4%.
In August, there were 11 projects each with a value of $100 million or more that entered planning. The leading commercial projects were a $215 million office building in Mount Juliet TN and a $200 million Amazon fulfillment center in Memphis TN. The leading institutional projects were a $235 million hospital tower in Salem OR and a $150 million dormitory at the University of South Carolina in Columbia SC.
About Dodge Data & Analytics: Dodge Data & Analytics is North America’s leading provider of analytics and software-based workflow integration solutions for the construction industry. Building product manufacturers, architects, engineers, contractors, and service providers leverage Dodge to identify and pursue unseen growth opportunities and execute on those opportunities for enhanced business performance. Whether it’s on a local, regional or national level, Dodge makes the hidden obvious, empowering its clients to better understand their markets, uncover key relationships, size growth opportunities, and pursue those opportunities with success. The company’s construction project information is the most comprehensive and verified in the industry. Dodge is leveraging its 100-year-old legacy of continuous innovation to help the industry meet the building challenges of the future. To learn more, visit www.construction.com.
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