Dodge Momentum Index Increases in June
July 11, 2018
The Dodge Momentum Index (DMI) is inching forward after a revised May reading. According to Dodge Data & Analytics, the index increased less than one percent to 165.5 from May’s 164.2. The index reports nonresidential building projects at the initial planning stage. This has been shown as a leading indicator for construction spending over the next 12-month period.
Both components of the overall index, commercial building and institutional building, increased in June. The June index surpassed the previous cycle high set in April, stated a report from Wells Fargo Securities. “Strength in the DMI suggests nonresidential construction is likely to strengthen further in the second half of 2018,” added Wells Fargo.
June showed the fifth consecutive month-to-month increase, and “the index was up 27.4 points in the past year on a three-month moving average basis, the steepest climb since April 2007,” continued the Wells report.
June saw 13 projects valued at $100 million or more enter planning. A $300 million hotel in Orlando and a $225 million warehouse in California led the commercial projects. The institutional side was led by a $349 million medical facility in Richmond and a $200 million hospital in Florida. In May, there were 16 such projects, while there were 12 in April. March had six $100 million-plus projects enter the planning stage.
-Michael Miller, managing editor