U.S. construction spending is predicted to be on the rise, according to one leading indicator. The Dodge Momentum Index from Dodge Data & Analytics showed the October reading up nearly 7% from the revised September index. The index measures the initial report of nonresidential building projects, which has led to show construction spending by a full year.
The institutional component skyrocketed nearly 23% in October while the commercial component slipped half a percent. However, institutional spending is still 4.3% behind on a year-over-year basis. Meanwhile, commercial spending is up more than 14% compared to the same time period last year. The overall index is still below the July 2018 peak even with the jump in October.
There were two dozen projects valued at $100 million or more that entered planning in October. A $470 million Florida hospital and a $356 million Colorado elementary school renovation led the way for the institutional side. On the commercial project side, a $250 million office building in New York and a $188 airline headquarters in Florida topped the list.
-Michael Miller, managing editor