Dodge Momentum Index Sees First Decline Since Summer
The Dodge Momentum Index saw a slight slip in October, falling for the first time since June. The Index declined 1.8%, according to Dodge Data & Analytics. The Momentum Index measures the initial report of nonresidential projects in planning, which has been an indicator for nonresidential construction spending.
"Economic growth has slowed over the past few months, creating weaker demand for commercial projects," states a release from Dodge. "The fear about a new wave of COVID-19 infections may also be impeding planning activity in consumer-focused projects such as hotels and retail, although planning for warehouse projects continues to impress."
Despite the dip in October, the institutional building component increased 3.3% from September, but it's still well below pre-pandemic numbers. The commercial component fell 4.4% in October.
There were 10 projects valued at $100 million or more to enter planning in October. The commercial side was led by a $200 million office complex in New York and a $100 million Amazon warehouse in Washington. The institutional side was led by two research labs valued at $300 million in Boston.
There were seven such projects in September and 11 in August.
-Michael Miller, managing editor