Dodge Momentum Index improves in January 2019

Charts courtesy of Dodge Data & Analytics. Click to enlarge.

The Dodge Momentum Index recovered with a 4.7 percent increase in January to 157.7 from the revised December reading of 150.6, according to Dodge Data & Analytics.

January’s uptick reflected similar gains for the two components of the Momentum Index: institutional building, up 5 percent, and commercial building, up 4.6 percent. The January improvement essentially reverses December’s decline, and brings the overall Momentum Index back to November’s level.

In January, nine projects each with a value of $100 million or more entered planning. The leading commercial building projects were two $300 million CloudHQ data centers in Ashburn, Virginia. The leading institutional building projects were a $235 million arena renovation project in Phoenix and a $140 million academic building at the University of North Carolina in Chapel Hill, North Carolina.

January’s reading is also consistent with the monthly average for the second half of 2018, Dodge Data & Analytics reports. Despite the fact that the commercial component remains below the highs set during the summer of 2018, the institutional component has gained traction as public funding for projects such as transportation terminals and schools remains supportive.

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.