Steel Markets

Dodge Index Indicates Potential Setback for Construction Spending in 2020
Written by Sandy Williams
January 8, 2020
A leading indicator of nonresidential construction spending rose in December, but yearly data suggests construction spending may see a slowdown in 2020. The Dodge Momentum Index, a monthly measure of the initial report for nonresidential building projects in planning, gained 1.5 percent last month for a reading of 156.2. Planning for institutional projects rose 2.3 percent, while the commercial component rose 0.9 percent.
The Momentum Index averaged 149.9 in 2019, a decline of 3.7 percent from the previous year. The average for the institution component fell 5.9 percent and the commercial component 2.3 percent compared to the averages in 2018.
“Last year’s slip in the dollar value of projects entering planning suggests that construction spending for nonresidential buildings could see a setback in the year to come,” said Dodge Data & Analytics. “However, the Momentum Index did end the year on a high note indicating that a decline in 2020 construction is likely to be modest in nature.
Thirteen projects valued at $100 million or more entered the planning stage in December.
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 us at info@SteelMarketUpdate.com.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.

Sheet market participants say sales still in a slump
Across the US and throughout the steel supply chain, market participants are reporting another painfully quiet week for hot-rolled (HR) coil sales.

CRU: Lower sheet prices have pulled back demand for imports
Domestic sheet prices in the US remained under pressure, limiting interest in imports, while domestic prices for longs products continued to rise.

President Trump intends to set additional steel tariffs
While boarding Airforce One on Friday, US President Donald Trump stated that he would be setting more steel tariffs and putting ~100% tariffs on semiconductors and chips.

USS, government officials give update on Clairton Coke Works incident
U.S. Steel, Allegheny County executive Sara Innamorato, and Pennsylvania Gov. Josh Shapiro clarified details from early reports about the Clairton Coke Works facility explosion just one day earlier.