Dodge Momentum Index Increases in November
Construction spending could be in the forecast as the calendar turns to 2020. According to Dodge Data & Analytics, the Dodge Momentum Index increased nearly 3% in November, almost setting a new cycle high. The index reached 155.3 following October's 150.9 reading. The index measures initial reporting of nonresidential construction, which has led to construction spending within a year.
The index is up nearly 15% from the yearly low, and institutional building was ahead 6.5% in November. The commercial component was only up 0.7% from October. "Nevertheless, the underlying trend of the Momentum Index continues to suggest that construction activity in 2020 will not crater but will moderately ease relative to this year's level," states the release.
There were six projects valued at $100 million or more that entered planning in November. On the institutional side there was a $208 million Virginia Tech campus project and a $144 million hospital in Wisconsin. A $180 million Los Angeles office building and a $125 million hotel in Dallas led the commercial projects.
-Michael Miller, managing editor