Steel Markets

Dodge Momentum Index Declines for Second Month

Written by Sandy Williams


Planning activity for construction of nonresidential buildings declined in September, according to the latest Dodge Momentum Index. The Index slid 2.6 percent to a reading of 159.5.

Both commercial and institutional planning projects were lower in September, falling 4.3 percent and 0.1 percent, respectively. The Index has dropped for two consecutive months, but on a quarterly basis is 0.8 percent higher than in the second quarter of this year.

Dodge Data & Analytics said the decrease can be attributed to “outsized gains” in the late spring and summer. “In fact, the Momentum Index is now returning to a more sustainable level of activity given the overall age of the current construction cycle,” said Dodge.

Twelve projects valued at $100 million or more entered the planning stage during September.

The 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. 

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