Dodge Momentum Index Moves Higher in June
The Dodge Momentum Index took another step forward in June, increasing 1.1 percent to 141.1 (2000=100) from its revised May reading of 139.6. 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.
June’s lift was due to a 4.8 percent advance by the institutional component of the Momentum Index, while the commercial component fell 1.3 percent. The Momentum Index has exhibited substantial strength since mid-2016, with the institutional and commercial components trading off as the driver of growth almost on a month-to-month basis. Although the commercial component of the index declined in the latest month, it is 11.8 percent higher than it was in June 2016, while the institutional component is 9.5 percent above a year ago. The overall rising trend for both sectors continues to suggest that construction activity will remain healthy through the end of the year.