NEW YORK (March 7, 2017) – The Dodge Momentum Index rose 1.6 percent in February to 144.0 from its revised January reading of 141.7. The 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.
February’s increase was due to a 4.4 percent jump in institutional planning, while commercial planning slipped slightly, falling 0.3 percent for the month. The Momentum Index has now increased for 5 consecutive months; however, the underlying components continue to be volatile on a month-to-month basis as large projects continue to sway the data. The overall trend, however, is rising. On a year-over-year basis the Momentum Index is 22 percent higher, with commercial planning up 28 percent and institutional planning moving 15 percent ahead of last year. This suggests that construction activity will continue to see further growth as the year progresses.
In February, four projects entered planning each with a value that exceeded $100 million. For the institutional building sector, the leading projects were a $100 million hospital in Westampton, New Jersey and a $100 million military barracks in Great Lakes, Illinois. The leading commercial projects were a $470 million hotel in Nashville, Tennessee and a $130 million hotel and shopping center in La Puente, California.
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