The Dodge Momentum Index rose 3.9 percent in January to 142.6 from its revised December reading of 137.3, says Dodge Data & Analytics.
According to Dodge Data & Analytics, the January increase was mainly due to a 12.1 percent increase in institutional planning that outweighed a 1 percent decline in commercial planning intentions.
During January, 11 projects worth more than $100 million entered planning. For the commercial building sector, the leading projects included a $278 million mixed-use building in New York City and a $180 million hotel and casino in Porterville, California. For the institutional building sector, the leading projects included a $192 million Department of Veterans Affairs medical center in Reno, Nevada, and a $145 million medical tower in Hackensack, New Jersey.
Despite the decline in commercial planning in January, that portion of the Dodge Momentum Index remains near its eight-year high and suggests it will see renewed strength in 2017, Dodge Data & Analytics adds. Institutional planning has been subject to volatility over the past two years; however, institutional planning projects trended higher through the end of 2016, which provides some optimism for 2017.
The Dodge 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. Dodge Data & Analytics is a technology-driven construction project data, analytics and insights provider.
