NEW YORK – April 5, 2019 – The Dodge Momentum Index increased 0.5% in March to 145.5 (2000=100) from the revised February reading of 144.8. 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 March uptick was due to a 2.8% increase in the commercial component of the Momentum Index, while the institutional component fell 3.0%.
The overall Momentum Index has essentially moved sideways and stayed within a very narrow band of activity since the fall of last year. This is highly indicative of where building markets currently are at this late stage of the construction cycle.
Source: Dodge Data & Analytics
While economic growth is expected to ease from 2018’s strong pace, relatively healthy real estate markets fundamentals and continued support for public projects such as a schools and transportation terminals should enable planning activity to remain close to recent levels for the near term.
In March, six projects each with a value of $100 million or more entered planning. The leading commercial project was the $100 million Piazza at Tysons office complex in Tysons VA. The leading institutional projects were a $300 million neuroscience research building at Washington University in St. Louis MO and the $153 million Novant Health Medical building in Charlotte NC.
