Dodge Momentum Index climbs in May 2018

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The Dodge Momentum Index improved slightly in May, moving 1.8 percent higher to 167.8 from the revised April reading of 164.9, reports Dodge Data & Analytics.

May’s improvement was the result of a 4.7 percent increase from the commercial component of the Momentum Index, despite a 2.4 percent decline from the institutional component.

The Momentum Index posted solid gains throughout each of the first five months of 2018, improving 19 percent from the same period in 2017 while also reaching a level not seen since mid-2008. 

In May, 16 projects – each with a value of $100 million or more – entered planning. The two leading commercial projects were a $310 million mixed-use complex in Newark, New Jersey, and the $300 million second phase of Nvidia’s headquarters in Santa Clara, California. From an institutional perspective, the two leading projects were the $300 million Milwaukee County safety building in Milwaukee and the $300 million Texas Health Harris Methodist Hospital expansion in Fort Worth, Texas.

The recent gains for the Momentum Index suggest construction spending for nonresidential buildings should remain healthy through the rest of 2018, according to the report.

The 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.