The Dodge Momentum Index fell 4.3% in September. The Momentum Index is a monthly measure of the first reports for non-residential building projects in planning, which has been shown to be a lead indicator for construction spending for non-residential buildings by a full year. The decline in September was the result of a 5.3% drop in institutional planning and a 3.6% decrease in commercial planning, retreating from the strong performance in August. September’s decline follows five consecutive months of gains, signaling that developers are moving plans forward. The September index is 5.1% higher than a year ago. In September, five projects entered planning, each with a value that exceeded $100 million. For the commercial building sector, the leading projects were a $200-million office tower in Chicago and a $150-million hotel in Irvine, Calif. The leading institutional projects were a $150-million hospital in Wyoming and a $105-million hospital in Salt Lake City.
Construction Momentum Slows After Five Consecutive Monthly Gains
November 2, 2016