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Category: Dodge Momentum Index

Dodge Momentum Index Falters in August

Pushing the Dodge Momentum Index lower in August was its commercial component, which dropped 6.1% from July. The commercial component had been on a strong run since the beginning of the year, rising 25% in the January to July period as improved business confidence likely pushed building intentions higher. While commercial planning did fall in August, the trend remains positive fueled by strong economic growth and still-healthy real estate fundamentals.

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Dodge Momentum Index Increases in July

In July, the commercial component of the Momentum Index grew by 3.3%, while the institutional component fell 1.5%.  The headline Momentum Index has risen steadily since its slippage during the third quarter of 2017.  Stronger economic growth and the support from still-healthy real estate market fundamentals (occupancies and rents) have contributed to these gains for construction projects at the planning stage, which have yet to be restrained by the uncertainty arising from higher material costs and higher interest rates. 

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Dodge Momentum Index Moves Higher in June

In June, the commercial component of the Momentum Index moved 1.1% higher, while the institutional component eked out a 0.3% gain. June’s advance marks the fifth straight monthly increase for the Momentum Index, which is now nearing a ten-year high, and suggests that the moderate strengthening of construction activity currently underway will continue through the end of 2018.

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Dodge Momentum Index Moves Higher in April

The Dodge Momentum Index jumped 6.1% in April to 163.0 (2000=100) from the revised March reading of 153.7. Over the last two months the commercial portion of the Momentum Index has posted the most aggressive growth, fueled by continued low vacancy rates for commercial buildings as well as the potential benefits from the tax cuts passed in December.

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Dodge Momentum Index Falls to Start Year

The Dodge Momentum Index dropped 5.1% in January to 143.7 (2000=100) from the revised December reading of 151.5. The commercial component of the Momentum Index was 7.8% lower in the month, while the institutional component was down 0.9%. The fourth quarter of 2017 was particularly strong for the Momentum Index, and January’s retreat returns it to a more sustainable level.

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Dodge Momentum Index recovers in October

The Dodge Momentum Index rose in October, climbing 13.2% to 130.9 (2000=100) from the revised September reading of 115.6. The move higher in October nearly reversed the erosion of the past four months (including September’s 7.9% decline), with October posting healthy gains in both sectors.

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Dodge Momentum Index resumes growth in May

Following a dip in April, the Dodge Momentum Index advanced 4.0% in May to 139.1 (2000=100) from its revised April reading of 133.7. 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.

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