Dodge Momentum Index inches higher in March 2019

By |  April 8, 2019

Photo: Dodge Data Analytics

The Dodge Momentum Index increased 0.5 percent in March to 145.5 from a revised February reading of 144.8.

According to Dodge Data & Analytics, the March jump was due to a 2.8 percent increase in the index’s commercial component, while the institutional component fell 3 percent.

The overall index has essentially moved sideways and stayed within a very narrow band of activity since the fall of last year, Dodge Data & Analytics says. This is highly indicative of where building markets currently are at this late stage of the construction cycle.

While economic growth is expected to ease from 2018’s strong pace, relatively healthy real estate market fundamentals and continued support for public projects should enable planning activity to remain close to recent levels for the near term.

In March, six projects – each with a value of $100 million or more – entered planning. The leading commercial project was the $100 million Piazza at Tysons office complex in Tysons, Virginia. The leading institutional projects were a $300 million neuroscience research building at Washington University in St. Louis, Missouri, and the $153 million Novant Health Medical building in Charlotte, North Carolina.

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

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About the Author:

Kevin Yanik is editor-in-chief of Pit & Quarry. He can be reached at 216-706-3724 or kyanik@northcoastmedia.net.

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