The Dodge Momentum Index fell 2.6% in November to 123.3 (2000=100) from the revised October reading of 126.5. The index, issued by Dodge Data & Analytics, 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 institutional component of the Momentum Index fell 4.4%, while the commercial component lost 1.6%.
Since the expiration of support programs in the CARES Act, the economy has struggled to maintain traction and in its wake planning for nonresidential building projects has slowed. As the next wave of COVID-19 infections quickly approaches, economic growth and job gains will ease further. Additionally, uncertainty over the potential for further federal stimulus has significantly complicated the recovery and will continue to negatively impact nonresidential building throughout the planning and construction processes.
