Steel Markets

Dodge Momentum Index Up Sharply in June

Written by Sandy Williams


The Dodge Momentum Index leapt 11.2 percent in June for a reading of 134.4 from the revised May reading of 120.8.

Dodge Data & Analytics attributes the jump to a 14.6 percent increase in institutional construction planning and a 7.7 percent increase in commercial planning.

Writes Dodge: “The gain in commercial planning reports is a positive development since that component of the Index had been moving in a fairly horizontal fashion since late-2014. The increase in the institutional component returns it to levels seen earlier this year. The overall Index is now at its highest level since early-2009; however, it has proven to be volatile on a month-to-month basis over the last two years. This unpredictability may continue through the remainder of the year, given the uncertainty related to the health of the U.S. economy and the upcoming November elections.”

There were 14 projects, exceeding a value of $100 million, which entered the planning stage in June. Of note were a $450 million hotel and convention center in Elk Grove CA and a $400 million hotel in South Bend IN. The leading institutional projects were a $230 million hospital in Santa Monica CA and a $158 million hospital in Columbus OH.

The Dodge Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have 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 it’s interactive features, you can do so by clicking here. If you need assistance with either logging in or navigating the website, please contact our office at 800-432-3475 or info@SteelMarketUpdate.com.

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