Dodge Momentum Index declines in January 2020

The Dodge Momentum Index begins 2020 with a dip. Chart courtesy of Dodge Data & Analytics | Click to enlarge

The Dodge Momentum Index fell 2.7 percent in January to 152.5 from a revised December reading of 156.7, snapping a four-month streak of gains.

The index, issued by Dodge Data & Analytics, 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, the January decline was the result of an 11 percent drop in the institutional component, offsetting a 2.7 percent gain in the commercial component.

A pattern exists when comparing year-over-year growth in the institutional and commercial components, with each following preexisting trends, according to Dodge. The institutional component was down 7.4 percent compared to January 2019. The commercial component, however, was 17.4 percent higher than a year ago.

These conflicting trends pushed the overall index up 7.1 percent from January 2019.

In January, 10 projects – each with a value of $100 million or more – entered planning. The leading commercial projects were a $200 million parking garage in the Bronx, New York, and the $160 million first phase of the Palomino Business Park in Norco, California. The leading institutional projects were the $500 million Good Samaritan Hospital expansion in West Islip, New York, and the $250 million Anschutz Medical Campus in Aurora, Colorado.