Feb. 7, 2018
The Dodge Momentum Index isn’t off to a great start in 2018. Dodge Data & Analytics reported it slipped 5.1% in January to a reading of 143.7 following December’s revised reading of 151.5. The commercial building and institutional building components also declined last month.
The commercial sector saw a sharp drop of nearly 8% in January, and the institutional component fell 0.9%. Despite the step back, the overall index is 7.7% ahead of January 2017. Both components of the index are also above last year’s data. “This suggests that nonresidential building construction should continue to post moderate gains in 2018,” said the release.
There were five projects that entered planning last month that were valued at $100 million or more. The commercial side was led by a $200 million office building in Boston and a $152 million warehouse in California. A $440 million water park in Missouri and a $123 million assisted-living facility in Milwaukee headlined institutional projects. There were 12 such projects in December, and in November, there were 21 $100 million-plus projects. October was also in double digits with 20 projects.
The index measures nonresidential building projects in planning from their initial report. The index has been shown to predict construction spending for nonresidential buildings.
-Michael Miller, associate editor