Dodge Momentum Index Falls in January

NEW YORK, N.Y. — The Dodge Momentum Index fell 4.8 percent in January to 121.1 (2000=100), down from a revised 127.2 in December, according to Dodge Data & Analytics.

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. During the final three months of 2014, the Momentum Index had jumped 11.7 percent, so while January’s 4.8 percent drop showed decreased activity relative to December, it was still in line with the moderate, if at times hesitant, upward trend that’s been present over the past three years. Compared to the same month a year ago, January’s Momentum Index was up 5.8 percent.

January’s decline for the Momentum Index relative to December was the result of decreased planning activity in both the commercial and institutional sectors. The institutional sector fell 10.2 percent, while the commercial sector edged down 0.4 percent. There were three commercial building projects exceeding $100 million that entered planning during the latest month — the $150-million Park District Office Building in Dallas, Texas; a $149-million office building in New York, New York and the $100-million Union Place mixed-use development in Mahopac, New York. There were four institutional projects over $100 million that entered planning during January, notably the $210-million UCF Downtown Campus (Creative Village) in Orlando Florida.

The Dodge Momentum Index      

(Year 2000=100)      

	Jan-15	Dec-14	% Change
Dodge Momentum Index	121.1	127.2	-4.8%
Commercial Building	134.3	134.8	-0.4%
Institutional Building	104.8	116.6	-10.2%

 

 Source: Dodge Data & Analytics.