Dodge Momentum Index Moves Higher in January

NEW YORK, NY– February 18, 2016 – The Dodge Momentum Index rose 2.4% in January to 126.4 (2000=100) from its December reading of 123.4. 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. The increase in January was the result of a 3.3% increase in institutional projects, and a 1.6% increase in commercial projects. On a year-over-year basis, the overall Index is 1.7% higher even though the commercial portion is down 6.8%. Commercial planning intentions started 2015 on an aggressive note before settling back by mid-year. Over the most recent few months commercial planning has been following a saw tooth pattern, but the overall trend has been positive as most commercial real estate fundamentals are improving. The institutional index on the other hand started 2015 on a weak note, but improved throughout the year and is now 14.0% higher than one year ago.

In January, 10 projects entered planning with a value that exceeded $100 million. For the commercial building sector, the leading projects were a $270 million convention center hotel in San Diego CA and a $140 million office and retail building in Atlanta, GA. For the institutional building sector, the leading projects were a $160 million renovation and addition at a USDA lab in Athens GA and a $150 million hospital expansion in Corpus Christi TX.

RELATED Dodge Momentum Index Rebounds in December, New Construction Starts Climb 13 Percent, New Construction Starts in 2016 to Grow 6% to $712 Billion, According to Dodge Data & Analytics

About Dodge Data & Analytics: Dodge Data & Analytics is the leading provider of data, analytics, news and intelligence serving the North American construction industry. The company’s information enables building product manufacturers, general contractors and subcontractors, architects and engineers to size markets, prioritize prospects, target and build relationships, strengthen market positions, and optimize sales strategies. The company’s brands include Dodge, Dodge MarketShare™, Dodge BuildShare®, Dodge SpecShare®, and Sweets. To learn more, visit www.construction.com.