Index shows continued promise for nonresidential building

The Dodge Momentum Index, a monthly measure of the first report for nonresidential building projects in planning, rose 3.6 percent in May from the previous month, according to McGraw Hill Construction.

The index has risen for six consecutive months, marking the longest period of increases since 2006. The index now rests at 117.4 and is up 36 percent since May 2012. The uncertainty surrounding new development appears, for now, to have dissipated, and the climate for nonresidential building projects is gaining strength as the planning pipeline grows more active, McGraw Hill Construction says.

In contrast to prior months, the May advance was largely the result of a strong upturn by the institutional segment. New plans for institutional buildings rose 10.2 percent in May, bolstered by plans for several college and hospital-related projects. Among the larger healthcare developments to enter planning in May were the $135 million University Hospital Patient Tower in West Chester, Ohio, and the $120 million INOVA Comprehensive Cancer and Research Institute in Fairfax, Va.