Dodge Momentum Index up in March 2022

The Dodge Momentum Index grew 4 percent in March to 166.9, up from a revised February reading of 160.3.

The momentum index, issued by Dodge Construction Network, 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.

In March, the commercial component of the momentum index rose 7 percent, while the institutional component fell by less than 1 percent.

The Dodge Momentum Index continued to trend higher in March, largely due to gains in planning for commercial projects, Dodge says. Commercial planning in March was just slightly lower than the all-time high set in October 2021, but Dodge says it has been much more volatile than institutional due to the presence, or absence, of large projects from month to month.

The institutional component has also been trending upward but remains 25 percent below the record set in December 2007, Dodge adds. When compared to March 2021, the overall momentum index was 17 percent higher in March 2022. The institutional component was up 23 percent year-over-year, while the commercial component was 14 percent higher.

Specific projects

A total of 21 projects with a value of $100 million or more entered planning in March, according to Dodge.

The leading commercial projects were the $923 million third phase of the Atlas Power data center in Williston, North Dakota, and the $325 million Seaport San Diego Block F in San Diego. The leading institutional projects were the $500 million Kaiser Yesler Terrace medical building in Seattle and the $500 million Strong Memorial Hospital inpatient tower in Rochester, New York.

Nonresidential projects entering planning continue to be robust despite rising energy prices, higher material costs and significant shortages of labor, Dodge says. While projects should continue to enter the pipeline, the lag from planning to groundbreaking has been growing and will likely result in a delayed impact on construction starts.