Dodge Momentum Index Shows Further Growth in April
The Dodge Momentum Index rose 5.2% in April from the previous month, according to McGraw Hill Construction, a division of McGraw Hill Financial. 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.
After hesitating last fall, the Momentum Index is strengthening once again, as the uncertainty that restrained plans for new construction now appears to be easing. Gains have been reported for the Momentum Index in each of this year’s first four months, and since December 2012, the Momentum Index is up by 23%. The April increase brings the Momentum Index to 114.4, the highest level since mid-2009.