The Dodge Momentum Index eked out a small gain in May, moving 1.8% higher to 167.8 (2000=100) from the revised April reading of 164.9. 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. May’s gain was the result of a 4.7% increase by the commercial component of the Momentum Index, while the institutional component fell 2.4%. The Momentum Index has posted solid gains through the first five months of 2018, rising 19% from the same period of 2017 and reaching a level not seen since mid-2008. However, the upturn to this point shows that the current expansion has been more drawn out than what occurred during the previous cyclical expansion. It has been nearly seven years since the Momentum Index hit bottom in July 2011, but it has yet to eclipse its previous peak set in December 2007. At the same time, the recent gains for the Momentum Index suggest that construction spending for nonresidential buildings should remain healthy through the rest of 2018.
In May, 16 projects each with a value of $100 million or more entered planning. The two leading commercial projects were a $310 million mixed-use complex in Newark NJ and the $300 million second phase of Nvidia’s headquarters in Santa Clara CA. The leading institutional projects were the $300 million Milwaukee County safety building in Milwaukee WI and the $300 million Texas Health Harris Methodist Hospital expansion in Fort Worth TX.
Related Stories
Market Data | Oct 19, 2020
5 must reads for the AEC industry today: October 19, 2020
Lower cost metros outperform pricey gateway markets and E-commerce fuels industrial's unstoppable engine.
Market Data | Oct 19, 2020
Lower-cost metros continue to outperform pricey gateway markets, Yardi Matrix reports
But year-over-year multifamily trendline remained negative at -0.3%, unchanged from July.
Market Data | Oct 16, 2020
5 must reads for the AEC industry today: October 16, 2020
Princeton's new museum and Miami's yacht-inspired luxury condos.
Market Data | Oct 15, 2020
6 must reads for the AEC industry today: October 15, 2020
Chicago's Bank of America Tower opens and altering facilities for a post-COVID-19 world.
Market Data | Oct 14, 2020
6 must reads for the AEC industry today: October 14, 2020
Thailand's new Elephant Museum and the Art Gallery of New South Wales receives an expansion.
Market Data | Oct 13, 2020
5 must reads for the AEC industry today: October 13, 2020
Miami Beach Convention Center renovation completes and guidance offered for K-12 schools to support students with asthma.
Market Data | Oct 12, 2020
Majority of contractors fear long-term business implications of COVID-19, according to Construction Executive survey
While many contractors have not yet seen drastic impacts to their business, as construction was in many areas considered an “essential” service, the long-term implications are concerning.
Market Data | Oct 12, 2020
6 must reads for the AEC industry today: October 12, 2020
4 challenges of realizing BIM's value for an owner and Florida office property is designed for a post-Covid world.
Market Data | Oct 8, 2020
6 must reads for the AEC industry today: October 8, 2020
The first rendering of the National Medal of Honor Museum is unveiled and seven urgent changes needed to fix senior living.
Market Data | Oct 7, 2020
6 must reads for the AEC industry today: October 7, 2020
Water-filled windows' effect on energy and construction begins on PGA of America HQ.