Dodge Momentum Index rises in June

By |  July 11, 2016

The Dodge Momentum Index rose 11.2 percent in June to 134.4 from its revised May reading of 120.8, Dodge Data & Analytics reports.

According to Dodge Data & Analytics, the increase in June was the result of a 14.6 percent increase in the institutional component and a 7.7 percent increase in the commercial component.

In June, 14 projects entered planning with a value that exceeded $100 million. For the commercial building sector, the leading projects were a $450 million hotel and convention center in Elk Grove, Calif., and a $400 million hotel in South Bend, Ind. The leading institutional projects were a $230 million hospital in Santa Monica, Calif., and a $158 million hospital in Columbus, Ohio.

The gain in commercial planning reports is a positive development because that component of the index had been moving in a fairly horizontal fashion since late-2014, Dodge Data & Analytics says. The increase in the institutional component returns it to levels seen earlier this year.

Dodge Data & Analytics adds that the overall index is now at its highest level since early-2009. However, it has proven to be volatile on a month-to-month basis over the last two years. This unpredictability may continue through the remainder of the year, the company says, given the uncertainty related to the health of the U.S. economy and the upcoming November elections.

The Dodge 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, according to Dodge Data & Analytics.

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