Key Indicator for Nonresidential Construction Falls 5% in January

Even with the latest decline in the Dodge Data & Analytics Momentum Index, the construction indicator is 7.7% higher on a year-over-year basis.

NEW YORK — The Dodge Momentum Index dipped 5.1% in January to 143.7 (2000=100) from the revised December reading of 151.5, Dodge Data & Analytics announced Wednesday.

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 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, according to Dodge Data & Analytics.

On a year-over-year basis, the Momentum Index is 7.7% higher, with both the commercial and institutional components showing growth over January 2017. This suggests that nonresidential building construction should continue to post moderate gains in 2018.

In January, five projects each with a value of $100 million or more entered planning. For the commercial sector, the leading projects were a $200 million office building in Boston and a $152 million warehouse in Banning, Calif. The leading institutional projects were a $440 million water park in Branson, Mo., and a $123 million assisted living facility in Milwaukee.

Dodge Data & Analytics is a leading provider of analytics and software-based workflow integration solutions for the construction industry. The company’s research and solutions are said to be leveraged by building product manufacturers, architects, engineers, contractors and service providers to identify and pursue growth opportunities.

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