Dodge Momentum Index up in March 2018

The Dodge Momentum Index improved by 6.1 percent in March, rising to 155.0 from a revised February reading of 146.0, according to Dodge Data & Analytics.

March’s 6.1 percent gain was the result of a 9.6 percent increase in the commercial component, effectively erasing the 5.1 percent decline from the previous month.

The institutional sector also showed growth, though at a mark of just 1.6 percent, which came on the heels of an 8.1 percent gain in February. 

During the first nine months of 2017, the overall index made narrow gains. However, planning activity increased in the fourth quarter (5.1 percent gain), carrying that impetus over into the first quarter of 2018. This may be a sign that planners are reacting positively to the Tax Cut & Jobs Act signed by President Trump in December, according to Dodge Date & Analytics.

Additionally, six projects, each with a value of $100 million or more, entered planning in March.

The 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.