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 | Apr 30, 2018
Outlook mixed for renewable energy installations in Middle East and Africa region
Several major MEA countries are actively supporting the growth of renewable energy.
Market Data | Apr 12, 2018
Construction costs climb in March as wide range of input costs jump
Association officials urge Trump administration, congress to fund infrastructure adequately as better way to stimulate demand than tariffs that impose steep costs on contractors and project owners.
Market Data | Apr 9, 2018
Construction employers add 228,000 jobs over the year despite dip in March
Average hourly earnings increase to $29.43 in construction, topping private sector by nearly 10%; Association officials urge updating and better funding programs to train workers for construction jobs.
Market Data | Apr 4, 2018
Construction employment increases in 257 metro areas between February 2017 & 2018 as construction firms continue to expand amid strong demand
Riverside-San Bernardino-Ontario, Calif. and Merced, Calif. experience largest year-over-year gains; Baton Rouge, La. and Auburn-Opelika, Ala. have biggest annual declines in construction employment.
Market Data | Apr 2, 2018
Construction spending in February inches up from January
Association officials urge federal, state and local officials to work quickly to put recently enacted funding increases to work to improve aging and over-burdened infrastructure, offset public-sector spending drops.
Market Data | Mar 29, 2018
AIA and the University of Minnesota partner to develop Guides for Equitable Practice
The Guides for Equitable Practice will be developed and implemented in three phase.
Market Data | Mar 22, 2018
Architecture billings continue to hold positive in 2018
Billings particularly strong at firms in the West and Midwest regions.
Market Data | Mar 21, 2018
Construction employment increases in 248 metro areas as new metal tariffs threaten future sector job gains
Riverside-San Bernardino-Ontario, Calif., and Merced, Calif., experience largest year-over-year gains; Baton Rouge, La., and Auburn-Opelika, Ala., have biggest annual declines in construction employment.
Market Data | Mar 19, 2018
ABC's Construction Backlog Indicator hits a new high: 2018 poised to be a very strong year for construction spending
CBI is up by 1.36 months, or 16.3%, on a year-over-year basis.
Market Data | Mar 15, 2018
ABC: Construction materials prices continue to expand briskly in February
Compared to February 2017, prices are up 5.2%.
