Dodge Momentum Index Rebounds in July

NEW YORK, N.Y. — The Dodge Momentum Index rose to 125.3 (2000=100) in July, up 5.4 percent from its June reading of 118.9 according to Dodge Data & Analytics. The 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.

The economic doldrums of the first half of 2015 were accompanied by a saw tooth pattern for the index, and July’s increase returns the index to its generally rising trend over the past four years. Improving real estate market fundamentals in the commercial sector and increased bond-related funding for institutional projects should continue to exert a positive influence over the index through the remainder of 2015. The increase in July relative to June was led by strong gains for both institutional planning, up 6.0 percent and commercial planning, up 4.9 percent.

There were a total of 13 projects entering planning in July with a value that exceeded $100 million — seven commercial projects and six institutional projects. In the commercial building sector, a $200-million Wal-Mart distribution center in Davenport, Florida entered planning, as did a $200-million office building on Sixth Street Northwest in Washington, D.C. Within the institutional building sector, a $350-million expansion of the Las Vegas Convention Center in Nevada entered planning, as did the $188-million Mount Si High School remodel and expansion project in Snoqualmie, Washington.

Dodge Momentum Index
(Year 2000=100)

	Jul-15	Jun-15	%Change
Dodge Momentum Index	125.3	118.9	5.4%
Commercial Building	132.5	126.3	4.9%
Institutional Building	116.3	109.7	6.0%
Source: Dodge Data & Analytics