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11-15-19 | Economic News

Monthly Momentum Index Rises

Dodge Data and Analytics

Of the six projects with a value of $100 million or more that entered planning in November, the leading institutional projects were the $208 million first phase of Virginia Tech's Innovation Campus in Alexandria and the $144 million ThedaCare Orthopedic Center Hospital in Appleton, Wisconsin. The leading commercial projects were a $180 million office building in Los Angeles and a $125 million JW Marriott Hotel in Dallas.

The Dodge Momentum Index, a monthly measure of the first report for nonresidential building projects in planning, moved 2.9% higher in November to 155.3. Issued by Dodge Data & Analytics, the index been shown to lead construction spending for nonresidential buildings by a full year. The increase in November was chiefly the result of a 6.5% increase in the institutional component, but the commercial component helped a little with a 0.7% gain.

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According to the provider of analytics for the construction industry, "The overall Momentum Index has staged somewhat of a resurgence over the last few months increasing nearly 15% from its lowest point earlier in the year. In fact, it is currently flirting with a new cyclical high. The month-to-month planning data continues to be lumpy in nature as the presence or absence of large projects leads to greater volatility. Nevertheless, the underlying trend of the Momentum Index continues to suggest that construction activity in 2020 will not crater but will moderately ease relative to this year's level."

In November, six projects each with a value of $100 million or more entered planning.

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