Dodge Momentum Index Shows Easing in Construction

Planning activity for nonresidential construction declined in August, according to the latest report issued by Dodge Data & Analytics. The Dodge Momentum Index slid 1.3 percent to 127.8 last month primarily due to a 16.6 percent decline in the institutional component that offset a 9.1 percent gain in the commercial component. The index is a measure of the first report for nonresidential building projects in planning, which have been shown to lead construction spending by a full year.

“On a year-over-year basis, the overall Momentum Index is 10.3 percent below August 2018, suggesting that construction spending will be settling back as the year progresses,” said Dodge. “However, most of the decline occurred in 2018 – the Momentum Index has lost only 1.8 percent since the beginning of 2019, indicating that while construction activity will ease it is not in a freefall.”