Dodge Momentum Index improves in December 2019

The Dodge Momentum Index ended 2019 on an upward swing. Chart courtesy of Dodge Data & Analytics | Click to enlarge

The Dodge Momentum Index improved 1.5 percent in December to 156.2 from the revised November reading of 153.9, according to Dodge Data & Analytics.

According to Dodge, both components of the index increased over the month, as the institutional component rose 2.3 percent while the commercial component climbed 0.9 percent.

In December, 13 projects each with a value of $100 million or more entered planning. The leading commercial projects were the $300 million Churchill Downs Hotel in Louisville, Kentucky, and a $200 million Walmart distribution center in Topeka, Kansas. The leading institutional projects were the $250 million Memorial Hermann Medical Center in Shenandoah, Texas, and the $240 million Advent Health Hospital in Lenexa, Kansas.

For 2019, the index averaged 141.9 – a 3.7 percent drop from 2018’s full-year average. Furthermore, the commercial component was 2.3 percent lower in 2019 than 2018, and the institutional component fell 5.9 percent compared to the previous year.

According to Dodge, 2019’s drop in dollar value of projects entering planning suggests that construction spending for nonresidential buildings could see a setback in the year to come. On a positive note, the index ended 2019 on an upward climb, indicating that any decline in construction activity this year is likely to be modest.

The Dodge Momentum Index 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.