Steel Markets
Dodge Momentum Index Indicates Construction Health
Written by Sandy Williams
June 6, 2018
The Dodge Momentum Index, a measure of the first report for nonresidential buildings in planning and an indicator of future construction, rose 1.8 percent in May to a score of 167.8. Commercial construction planning drove the increase in May, gaining 4.7 percent while the institutional component of the Index fell 2.4 percent.
Dodge Data & Analytics notes that the index has posted steady gains this year, reaching levels from mid-2008. The index hit bottom in July 2011 and still hasn’t reached the previous peak set in 2007. The cycle of expansion is much more drawn out than the last cycle.
The May reading suggests construction will remain at a healthy rate for nonresidential spending for the remainder of the year.
Sixteen projects valued at $100 million or more entered the planning phase in May, including $300 million commercial projects in New Jersey and California and $300 million institutional projects in Wisconsin and Texas.
The Momentum Index, published by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year.
Below is a graph showing the history of the Dodge Momentum Index. You will need to view the graph on our website to use its interactive features; you can do so by clicking here. If you need assistance logging in to or navigating the website, please contact Brett at 706-216-2140 or Brett@SteelMarketUpdate.com.
Sandy Williams
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