The Dodge Momentum Index eked out a small gain in May, moving 1.8 percent higher to 167.8 (2000=100) from the revised April reading of 164.9. 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. May’s gain was the result of a 4.7 percent increase by the commercial component of the Momentum Index, while the institutional component fell 2.4 percent. The Momentum Index has posted solid gains through the first five months of 2018, rising 19 percent from the same period of 2017 and reaching a level not seen since mid-2008. However, the upturn to this point shows that the current expansion has been more drawn out than what occurred during the previous cyclical expansion. It has been nearly seven years since the Momentum Index hit bottom in July 2011, but it has yet to eclipse its previous peak set in December 2007. At the same time, the recent gains for the Momentum Index suggest that construction spending for nonresidential buildings should remain healthy through the rest of 2018.
In May, 16 projects each with a value of $100 million or more entered planning. The two leading commercial projects were a $310 million mixed-use complex in Newark, N.J. and the $300 million second phase of Nvidia’s headquarters in Santa Clara, Calif. The leading institutional projects were the $300 million Milwaukee County safety building in Milwaukee and the $300 million Texas Health Harris Methodist Hospital expansion in Fort Worth, Texas.
# # #
About Dodge Data & Analytics: Dodge Data & Analytics is North America’s leading provider of analytics and software-based workflow integration solutions for the construction industry. Building product manufacturers, architects, engineers, contractors, and service providers leverage Dodge to identify and pursue unseen growth opportunities and execute on those opportunities for enhanced business performance. Whether it’s on a local, regional or national level, Dodge makes the hidden obvious, empowering its clients to better understand their markets, uncover key relationships, size growth opportunities, and pursue those opportunities with success. The company’s construction project information is the most comprehensive and verified in the industry. Dodge is leveraging its 100-year-old legacy of continuous innovation to help the industry meet the building challenges of the future. To learn more, visit www.construction.com.