This month’s increase in the Dodge Momentum Index was the first in all of 2020. Since December 2019, the Momentum Index has lost 18% with most of the decline coming in April when the COVID-19 pandemic led to numerous business shutdowns across the country. The pullback has largely come from institutional planning, rather than commercial plans.
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While the Dodge Momentum Index may move lower in the future, its present level continues to suggest that there are enough projects entering planning to allow construction to begin a modest recovery in the third quarter.
Read MoreThe Dodge Momentum Index moved 6.0% lower in April to 135.9 from the revised March reading of 144.5. Both components of the Momentum Index pulled back during the month – the commercial component fell 7.6%, while the institutional component dropped 3.2%.
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The Dodge Momentum Index, issued monthly by Dodge Data & Analytics, moved 1.8% lower in February. 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.
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The Dodge Momentum Index fell 2.7% in January. The decline in the overall Momentum Index was the result of an 11.0% drop in the institutional component, more than offsetting a 2.7% gain in the commercial component.
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Dodge Data & Analytics announced today that the Dodge Momentum Index increased 1.5% in December. Both components of the Momentum Index rose over the month – the institutional component gained 2.3%, while the commercial component rose 0.9%.
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Dodge Momentum Index October’s increase was due entirely to a recovery in institutional planning projects, which had stepped back over the previous few months. Institutional planning moved 22.8% higher in the month while commercial planning lost 0.5%.
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The gain in the September Dodge Momentum Index was due entirely to an 8.9% increase in the commercial component, while the institutional component fell 4.8%.
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The Dodge Momentum Index, issued by Dodge Data & Analytics, dropped 1.3% from July to August to 137.8. The drop was the result of a 16.6% decline in the institutional component offsetting a 9.1% gain in the commercial component.
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The lower reading for the Dodge Momentum Index in July was due to a 10.2% pullback by its institutional segment following a 6.0% increase in June. The commercial segment in July was basically flat, slipping a slight 0.3%.
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