The Dodge Momentum Index dropped 3.3 percent in July to 135 from its revised June reading of 139.6, reports Dodge Data & Analytics. 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.
According to Dodge Data & Analytics, the drop in July was mainly due to a 6.6 percent decline in the institutional component and a 1.1 percent decline in the commercial component of the Dodge Momentum Index.
In July, nine projects entered planning, each with a value of $100 million or more. For the institutional building sector, the leading projects were a $200 million Kaiser Permanente Medical Center in Woodbridge, Virginia, and the $200 million phase 2B of the Thompson Education Center in Rocky Hill, New York. For the commercial building sector, the leading projects were a $177 million Amazon fulfillment center in North Randall, Ohio, and the $170 million Pala Casino and Resort in Pala, California.
Despite the decline from June to July, the Dodge Momentum Index is 6.9 percent higher compared with one year ago, which suggests further moderate gains in construction activity throughout the year, Dodge Data & Analytics says. The commercial component of the Dodge Momentum Index is 8 percent higher compared with last year, and the institutional component is 5.3 percent higher compared with last year.
Dodge Data & Analytics is a provider of analytics and software-based workflow integration solutions for the construction industry.
