Dodge Momentum Index Increases in November

Planning for new commercial building projects drove a 5.3 percent increase for the Dodge Momentum Index, resulting in a reading of 159.7 in November. 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. The commercial component of the index rebounded 9.4 percent from recent declines, but was still below this year’s spring and summer levels. Dodge Analytics sees that as a sign the commercial building sector may be reaching a peak.

Planning for institutional projects was generally stable in 2018 due to public funding for schools and transportation terminals. The institutional component of the Index dipped 0.6 percent last month.