Dodge Momentum Index back on upward track

The Dodge Momentum Index, a monthly measure of the initial report for nonresidential building projects in planning, increased 4 percent in February to 158.2.

Dodge Construction Network, which issues the momentum index, says it has shown to lead construction spending for nonresidential buildings by a full year.

In February, institutional planning rose 9 percent while commercial planning moved 1 percent higher.

According to Dodge, the momentum index rebounded from three consecutive monthly declines that followed a 14-year high in October 2021. Much of February’s gain was due to a sizable jump in the institutional component, as more education and health care projects entered planning. Commercial planning remained solid, Dodge says, thanks to office and warehouse projects.

Compared to February 2021, the overall momentum index was 11 percent higher this February. The institutional component was up 37 percent, while the commercial component was down 1 percent on a year-over-year basis.

A total of 22 projects with a value of $100 million or more entered planning in February, according to Dodge. The leading institutional projects were a $500 million first phase of the OC Vibe recreation and mixed-use space in Anaheim, California, and the $299 million Kaiser Roseville Medical Center in Roseville, California. The leading commercial projects were the $500 million Potomac Technology Park data center in Manassas, Virginia, and a $175 million Chick-fil-A refrigerated warehouse in Hutchins, Texas.

Dodge says February’s increase in the momentum index suggests that the construction sector continues to weather the storm of higher material prices and labor scarcity. The firm says the sector is looking past the pandemic’s unique issues for projects like schools and offices. As the pipeline of projects awaiting groundbreaking fills, a more even and pronounced recovery in construction starts will take hold, Dodge adds.