Dodge Momentum Index feels impact from coronavirus

Both the institutional and commercial components retreated during April. Click chart to enlarge | Chart: Dodge Data & Analytics

The Dodge Momentum Index dropped 6 percent in April to 135.9 from a revised March reading of 144.5, according to Dodge Data & Analytics.

Both components of the index retreated in April, as the commercial component dropped 7.6 percent and the institutional component fell 3.2 percent.

According to Dodge, the coronavirus had a significant impact on the economy in April, affecting the construction industry and virtually all sectors. While planning activity declined during the month, that downshift has not been fully realized in the index since it’s a three-month moving average, Dodge says.

In April, six projects each with a value of $100 million or more entered planning. The leading commercial projects were a $380 million office building in San Jose, California, and the $100 million Dream Hotel in Las Vegas. The leading institutional projects were a $365 million medical building in Houston and the $100 million Harrisburg University Health Science Education Center in Harrisburg, Pennsylvania.

The Dodge Momentum 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.

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