Dodge Momentum Index Loses Ground in July

NEW YORK, N.Y. — The Dodge Momentum Index erased the gains made over the last two months, falling 4.4 percent in July to 121.4 (2000=100). This marks the index's first decline in four months, according to McGraw Hill Construction, a division of McGraw Hill Financial.

The Momentum 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. While the Dodge Momentum Index stumbled in July, on a year-over-year basis it remains 16.5 percent higher than a year earlier. The July decline therefore may simply be a return to a more sustainable pace following a spring bump.

July's decline in the index was the result of a 6.8 percent drop in commercial building plans, while the institutional sector fell a milder 0.6 percent. Despite the drop, six sizeable commercial projects valued at $100 million or more entered planning in July.

These include the $400-million 50 Hudson Yards Office Tower in New York City, the $350-million University Town Center (Phase II) in Sarasota, Florida, the $319-million Consolidated Rental Car Facility at Tampa, Florida's International Airport, the $130-million Irvine Center Office Tower in Irvine, California, a $100-million hotel in Brooklyn, New York and the $100-million Akard Place Office Tower in Dallas, Texas.