Dodge Momentum Index Improves for Second Straight Month
A construction spending indicator reports a potential increase in outlays as the U.S. economy continues to recover from earlier shutdowns. The Dodge Momentum Index, which measures the initial report of nonresidential building projects in planning, increased 1.8% in August, according to Dodge Data & Analytics.
"The August increase in the overall Momentum Index is the second consecutive rise and a further sign that the construction sector continues to post a modest recovery following the large declines in April and June," states a release from Dodge.
The commercial component increased 3.3% in August; however, it is 13% below its 2018 peak. The commercial aspect has increased 9% from its trough June. The institutional component declined 1.2% in August, and it is dropped for five straight months. It is now 34% below its recent peak, states Dodge.
There were 11 projects that entered planning valued at $100 million or more in August. The commercial side was led by a $262 million UPS distribution facility in North Carolina and a $200 million Amazon distribution center in Texas. The institutional projects included a $150 million hospital in Florida and a $125 million second phase of an arena in New York.
-Michael Miller, managing editor