The Dodge Momentum Index moved 1.8% lower in February to 148.7 (2000=100) from the revised January reading of 151.4. 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 drop in February was the result of declines in both components of the Momentum Index, with the commercial component losing 2.1% and the institutional component declining by 1.2%.
While the overall Momentum Index has declined for two consecutive months, it remains 11% higher on a year-over-year basis. The commercial component is 20% higher than a year ago, while the institutional component is 2% lower. This continues to suggest that construction activity should remain near its recent highs in 2020.
In February, six projects each with a value of $100 million or more entered planning. The leading commercial projects were a $200 million hotel in Cincinnati OH and a $300 million Amazon warehouse in Colorado Springs CO. The leading institutional projects were the $420 million Asante Rogue Regional Medical Center in Medford OR and a $150 million lab facility in New Haven CT.
