Dodge Momentum Index gets boost in February 2021

The Dodge Momentum Index rose 7.1 percent in February to 149 from a revised January reading of 139.1.

The momentum index, issued by Dodge Data & Analytics, is a monthly measure of the first report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year.

In February, the institutional component of the momentum index jumped 26.3 percent while the commercial component was essentially flat.

February’s mark represents the highest level of the momentum index in nearly three years, Dodge Data says. It’s the result of a surge in large projects that entered planning.

According to Dodge Data, it remains to be seen if this level of activity – especially in the institutional sector – is sustainable given the tenuous economic recovery and rising material prices. Institutional planning projects in February were concentrated in large hospitals and labs, while commercial planning projects primarily included data centers, warehouses and office projects.

Compared to a year ago, the overall momentum index was up 9.2 percent while the commercial component was 15.2 percent higher and the institutional component was down 3.3 percent.

Over the course of February, 14 projects entered planning each with a value of $100 million or more. The leading institutional projects were the $230 million University of Iowa Hospital in North Liberty, Iosa, and the $190 million Ultra Labs Life Sciences building in Philadelphia. The leading commercial projects were two data centers in Catlett, Virginia – each with a value of $135 million.