Dodge Momentum Index improves in April 2018

The Dodge Momentum Index jumped 6.1 percent in April to 163.0 from the revised March reading of 153.7. 

Both components of the index improved in April, as the commercial component went up 6.3 percent while the institutional component rose 5.8 percent.

The commercial portion has shown the most aggressive improvement over the last two months due to continued low vacancy rates for commercial buildings, as well as potential benefits from December’s tax cuts.

As for the institutional component, gains have been steady but more moderate, reflecting the ebb and flow of public funding for larger education and public building projects.

In April, 12 different projects each with a value of $100 million or more entered planning. The two leading commercial projects were office buildings – a $200 million building in Boston and a $175 million building in Atlanta. As for institutional projects, the leading projects were a $100 million hospital in San Luis Obispo, California, and a $100 million training center in Pelham, Alabama.

The momentum index is a monthly measure of the first report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year.