Steel Markets

Dodge Index Ends Year with a Gain

Written by Sandy Williams


A favorable indicator of construction activity, the Dodge Momentum Index gained 3.6 percent in December for a reading of 153.9. The November index was revised downward to 148.6 from 149.5. The gain last month was due to an 8.5 percent jump in planning for institutional building projects. The commercial building index gained just 0.7 percent in December.

The Momentum Index was 10.7 percent higher in 2017 than in 2016.  The fourth quarter rebounded from weakness in Q3 resulting in an average of 132.3 for the year. Yearly indexes for the commercial and institutional sectors gained 11.4 percent and 9.7 percent, respectively. December’s Momentum reading was 20.9 percent higher than December of the previous year.

“The continued strengthening by the Momentum Index in 2017 suggests that nonresidential building construction activity will advance further during 2018,” said Dodge Data & Analytics.

Twelve projects with a value of $100 million or more entered the planning phase in December.

The Dodge 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 into or navigating the website, please contact our office at 800-432-3475 or info@SteelMarketUpdate.com.

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