The Dodge Momentum Index moved 3.4% higher in July to 124.7 (2000=1000) from the revised June reading of 120.5. The Momentum 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. During the month, the commercial component increased 5.3% while the institutional component was unchanged.
This month’s increase in the Dodge Momentum Index was the first in all of 2020. Since December 2019, the Momentum Index has lost 18% with most of the decline coming in April when the COVID-19 pandemic led to numerous business shutdowns across the country. The pullback has largely come from institutional planning, rather than commercial plans. State and local government revenues have been squeezed as declines in economic activity have led to a drop in tax revenue just as costs related to the pandemic have skyrocketed. The institutional component is currently 28% below its December 2019 peak and 21% lower than its year ago level. Commercial planning is down 13% from its January 2020 peak, but is actually 1% higher than its year-ago level.
In July, 13 projects each with a value of $100 million or more entered planning. The leading commercial projects were the first two phases of the Centene Healthcare headquarters in Charlotte NC, with each phase valued at $500 million. The leading institutional projects were the $320 million Dignity Health Hospital in Elk Grove CA and the $155 million first phase of the West Henderson Hospital in Henderson NV.
Related Stories
Market Data | Jun 18, 2020
AIA releases strategies and illustrations for reducing risk of COVID-19 in schools
For the 2020-21 school year, districts are facing the difficult task of determining if K-12 schools will reopen this fall.
Market Data | Jun 18, 2020
6 must reads for the AEC industry today: June 18, 2020
Northbrook's new cannabis dispensary and America's structural steel industry remains a success story.
Market Data | Jun 17, 2020
6 must reads for the AEC industry today: June 17, 2020
Santa Fe becomes the second city in the world to achieve LEED v4.1 and the megacity is dead.
Market Data | Jun 16, 2020
7 must reads for the AEC industry today: June 16, 2020
Tottenham Hotspur Stadium has its own brewery and workers want policy changes before they return to offices.
Market Data | Jun 15, 2020
International Code Council offers guidance on building re-occupancy for reopening economies
Companies and building managers can access free resources at the Code Council’s Coronavirus Response Center.
Market Data | Jun 12, 2020
6 must reads for the AEC industry today: June 12, 2020
How will museums change in the face of COVID-19 and the patriarch of The Boldt Company dies.
Market Data | Jun 11, 2020
5 must reads for the AEC industry today: June 11, 2020
Istanbul opens largest base-isolated hospital in the world and AIA issues tools for reducing risk of COVID-19 transmission in buildings.
Market Data | Jun 10, 2020
6 must reads for the AEC industry today: June 10, 2020
Singapore's newest residential district and CannonDesign unveils COVID Shield.
Market Data | Jun 9, 2020
ABC’s Construction Backlog Indicator inches higher in May; Contractor confidence continues to rebound
Nonresidential construction backlog is down 0.8 months compared to May 2019 and declined year over year in every industry.
Market Data | Jun 9, 2020
6 must reads for the AEC industry today: June 9, 2020
OSHA safety inspections fall 84% and the office isn't dead.