HAMILTON, N.J.–The Dodge Momentum Index moved a scant 0.1% lower in May to 129.2 (2000=100) from the revised April reading of 129.4. 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 commercial component of the Momentum Index rose 1.0% during the month, while the institutional component dropped 1.9%.
The resilience of the Momentum Index over the last two months has been remarkable in the face of the COVID-19 crisis and resulting economic recession. With May’s reading, the Momentum Index is down 17% from its most recent peak in July 2018. During the Great Recession, by contrast, the peak-to-trough decline was 62%. While the Momentum Index may move lower in the future, its present level continues to suggest that there are enough projects entering planning to allow construction to begin a modest recovery in the third quarter.
In May, eleven projects each with a value of $100 million or more entered planning. The leading commercial projects were a $213 million warehouse in Riverside CA and a $195 million warehouse in Perris CA. The leading institutional projects were the $213 million Kaiser Permanente hospital in San Marcos CA and the $100 million Indiana University Health Methodist Hospital in Indianapolis IN.
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.
Courtesy of -(BUSINESS WIRE)-