Economy

Dodge Momentum Index Makes 3rd Consecutive Gain

July 9, 2014

The Dodge Momentum Index rose for the third consecutive month, gaining 3.3 percent in June to register 128.7, according to McGraw Hill Construction. The Index is a monthly measure of initial planning for nonresidential building projects. The report leads construction spending by a full year and can be used an indicator for future construction. Any reading above 100, established for year 2000, indicates growth in construction planning.

After a weak start in 2014 due to adverse weather, the Index shows a gain in volume of projects that suggests higher nonresidential construction starts for the second half of 2014. The June 2014 reading is 22.5 percent higher than the reading in June 2013.

Commercial building plans surged by 8.3 percent in June while new institutional projects declined by 4 percent. McGraw Hill Construction reports that five projects valued at $100 million or more entered the planning stage in June.

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{amchart id=”125″ Dodge Momentum Index}