The Dodge Momentum Index moved 2.9% higher in November to 155.3 (2000=100) from the revised October reading of 150.9. The Momentum Index, issued by Dodge Data & Analytics, 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. The increase in November was the result of a 6.5% increase in the institutional component, while the commercial component moved 0.7% higher.
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Dodge Momentum Index (Photo: Business Wire)
The overall Momentum Index has staged somewhat of a resurgence over the last few months increasing nearly 15% from its lowest point earlier in the year. In fact, it is currently flirting with a new cyclical high. The month-to-month planning data continues to be lumpy in nature as the presence or absence of large projects leads to greater volatility. Nevertheless, the underlying trend of the Momentum Index continues to suggest that construction activity in 2020 will not crater but will moderately ease relative to this year’s level.
In November, six projects each with a value of $100 million or more entered planning. The leading institutional projects were the $208 million first phase of Virginia Tech’s Innovation Campus in Alexandria VA and the $144 million ThedaCare Orthopedic Center Hospital in Appleton WI. The leading commercial projects were a $180 million office building in Los Angeles CA and a $125 million JW Marriott Hotel in Dallas TX.
About Dodge Data & Analytics: Dodge Data & Analytics is North America’s leading provider of analytics and software-based workflow integration solutions for the construction industry. Building product manufacturers, architects, engineers, contractors, and service providers leverage Dodge to identify and pursue unseen growth opportunities and execute on those opportunities for enhanced business performance. Whether it’s on a local, regional or national level, Dodge makes the hidden obvious, empowering its clients to better understand their markets, uncover key relationships, size growth opportunities, and pursue those opportunities with success. The company’s construction project information is the most comprehensive and verified in the industry. Dodge is leveraging its 100-year-old legacy of continuous innovation to help the industry meet the building challenges of the future. To learn more, visit www.construction.com.