The Dodge Momentum Index Increased in April. Here's What That Means.
The Dodge Momentum Index rose 0.6% in April to 116.5 from its revised March reading of 115.8 (2000=100).
The Momentum Index tracks the number of nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year.
Increased planning activity for both commercial and institutional building was largely responsible for April's gain, with commercial planning moving 0.8% higher and institutional planning rising 0.4%. Over the last eight months, institutional planning has seen considerable volatility, making impressive gains through early 2016 before falling 16% last month.
With April’s slight gain, institutional planning is now 7% above its level last year, which suggests that despite the ups and downs on a month-to-month basis, the sector’s recovery is continuing steadily. The overall Index is now essentially even with April 2015, as the industry has seen a softened pace for commercial planning compared to a year ago.
In April, six projects began planning with a value over $100M. In commercial building, the leaders were a $225M hotel in Anaheim, CA and a $200M warehouse in Jacksonville FL. For institutional building, the leading projects were a $500M expansion to the Los Angeles County Museum of Art and a $163M outpatient health center in Tahlequah ,OK.