Economy

Dodge Momentum Index Declines for 3rd Month

Written by Sandy Williams


The Dodge Momentum Index, a monthly measure of initial reports for nonresidential building projects in planning, fell 0.7 percent from August to a reading of 115.8 for September. The index rose 13 percent in the first half of this year but has been down in the past three months by a combined percentage of 7 percent.

“Despite these setbacks, the Momentum Index remains 8% higher than a year ago, indicating that to this point the upward trend for nonresidential building projects at the planning stage is still present,” wrote McGraw Hill in its monthly report.

Commercial building plans declined 0.8 percent in September and institutional building plans were down 0.4 percent.

The Dodge Momentum Index, published monthly by McGraw Hill Construction, a division of McGraw Hill Financial, 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.

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{amchart id=”125″ Dodge Momentum Index}

 

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