Economy

Dodge Momentum Index Slips Again in June

Written by Sandy Williams


Building planning declined in June according to the Dodge Momentum Index published by Dodge Data & Analytics. The Index, which is a monthly measure of the initial report for nonresidential building projects in planning, dropped 1.3 percent to 118.3 from 119.9 in May.

Overall, the Index is just 2.2 percent higher than June 2014 and indicates a “lackluster performance thus far in 2015,” according to Dodge. As indicated by the graph the momentum trend has been on a decline since the beginning of the year.

 

Commercial building planning fell 2.6 percent in June due in part to economic weakness in the first quarter. A pick up in planning is expected later in the year supported by favorable real estate market fundamentals.

Planning for institutional buildings fared better in June, rising 0.6 percent and up for the second consecutive month. Compared to June of 2014, institutional building is up 10.1 percent.

Three projects exceeding $100 million began the planning stage in June, two in Washington DC and one in Boiling Springs, PA.

Richard Branch, Senior Economist for Dodge Data and Analytics will be one of the speakers at this year’s Steel Summit Conference on September 1st and 2nd.

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