Dodge Momentum Index loses ground in June 2020

The Dodge Momentum Index dropped 6.6 percent in June to 121.5 from a revised May reading of 130.1.

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

The institutional component of the index fell 11.7 percent while the commercial component declined 3.5 percent.

The index has shifted noticeably lower as fallout from the recession continues to hold its grip on the construction sector, Dodge Data says. The overall index fell 13 percent in the second quarter from the first three months of the year, with the commercial component 14 percent lower and the institutional component down 11 percent.

While construction projects continue to enter planning, the slower pace suggests recovery in the construction sector will be modest in coming months, Dodge Data says.

In June, seven projects – each with a value of $100 million or more – entered planning. The leading commercial projects were a $200 million warehouse in Windsor, Connecticut, and a $200 million office building in Somerville, Massachusetts. The only institutional project over $100 million was a $115 million emergency room addition in Johnson City, New York, according to Dodge Data.