Sept. 8, 2017
The Dodge Momentum Index has declined for the second straight month, but it is slightly ahead of last year. The August reading dipped 2.4% to 129.1 after July was revised to 132.2. On a year-over-year outlook, the index from Dodge Data & Analytics is up 0.3%.
The index measures the initial report of nonresidential building projects in the planning phase, which can lead to future construction spending. “These two most recent readings point to moderate construction growth in 2018,” said a Wells Fargo Securities release.
A major reason for the August drop is due to the commercial component declining nearly 9%. “This marks the first year-to-year decline since April 2016, down 1.2 percent compared to last August,” added Wells Fargo. The institutional component increased 7.3%, following a more than 9% fall in July. “Over the year, the sector is up 2.3 percent. However, we could see stronger yearly gains institutionally in coming months as plans dropped over 9 percent in September through December 2016,” Wells Fargo explained.
There were eight projects that entered planning valued at $100 million or more in August. On the institutional side, there was a $230 million University of New Mexico hospital and a $218 million Texas high school. The commercial sector was led by a $205 million Niagara Falls hotel and an Amazon fulfillment center in Oregon valued at $178 million.
– Michael Miller, editorial associate