Dodge Momentum Index Dips in April

The Dodge Momentum Index fell 0.5% in April to 144.3 (2000=100) from the revised March reading of 145.1. 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 retreat in April was the result of the commercial component falling 1% while the institutional component rose a scant 0.2%.

The momentum index has clearly lost some impetus over the last 12 months. The overall momentum index is down 8.5% since April 2018, with the commercial component 4.7% lower and the institutional component 13.9% lower. However, over the past several months the momentum index has moved in a crab-like fashion with neither strong gains nor losses. This suggests there continues to be a reasonably healthy number of projects in the planning pipeline to support a moderate level of construction activity in the coming months.

In April, 18 projects each with a value of $100 million or more entered planning. The leading commercial projects were a $418-million Microsoft data center in Des Moines, Iowa and a $300-million warehouse in Staten Island, New York. The leading institutional projects were a $300-million hospital in New York, New York and a $200-million hospital in Beachwood, Ohio.