Dodge Momentum Index inches higher in July

The Dodge Momentum Index moved slightly higher in July, increasing to 134.7 from its revised June reading of 134.1, according to Dodge Data & Analytics.

July’s modest rise follows a substantial increase in June, which saw the index climb 10.9 percent from the previous month.

The index has now moved higher in four consecutive months, which is the first such string of increases since late 2014, Dodge Data reports. July’s improved pace was due to slight gains for each of the two major sectors, with institutional planning up 0.7 percent and commercial planning up 0.4 percent.

In addition, the rise in the index from April through July suggests that planning for construction projects is progressing in an uneven pattern, despite concerns over the subdued rate of economic growth, Dodge Data says.

Eleven projects entered planning in July with a value that exceeded $100 million. For the commercial building sector, the leading projects were a $200 million mixed-use project in Sugar Land, Texas, and a $161 million office in Fremont, Calif. The leading institutional projects were a $177 million hospital tower in Chapel Hill, N.C., and a $138 million hospital in Atlanta.

The Dodge 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, according to Dodge Data.