Nonresidential building scene showing improvement

The Dodge Momentum Index, a monthly measure of the first report for nonresidential building projects in planning, climbed 8.1 percent in July after retreating a revised 2.4 percent in June, according to McGraw-Hill Construction.

The momentum index for July came in at 98.8, up from June’s 91.4 revised level. According to McGraw-Hill, the month’s improvement is consistent with last week’s employment report, which showed a stronger-than-expected increase of 163,000 jobs. Although further increases in the index would be needed to suggest a true rebound in construction, July’s gain could be considered a first step in that direction.

Both the commercial and institutional components of the momentum index rose in July. The institutional building segment advanced 9.0 percent after an 11.2 percent decline in June. A 5.8 percent increase in new planning projects for education buildings aided the gain in institutional building.

The commercial building segment climbed 7.3 percent in June, even stronger than last month’s revised 6.7 percent improvement. Commercial building was helped by a small 2.5 percent gain in new plans for office projects.