From Dodge Data Analytics: Dodge Momentum Index Falls in January
The Dodge Momentum Index declined 7% in January to a four-month low of 152.9 (2000=100), from the revised December reading of 163.7. The Momentum Index, issued by Dodge Construction Network, is a monthly measure of the initial report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. In January, commercial planning fell 9%, and institutional planning slipped 1%.
The Dodge Momentum Index had a stellar 2021, rising 23% from 2020 and reaching levels not seen in nearly 14 years. The recent string of declines, however, may be blamed on rising costs, logistical problems and shortages of skilled labor. Still, even as it has decreased, the dollar value of projects in planning remains exceptionally strong, especially for education, warehouse and healthcare projects.
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This graph shows the Dodge Momentum Index since 2002. The index was at 152.9 in January, down from 163.7 in December.
According to Dodge, this index leads “construction spending for nonresidential buildings by a full year”. This index suggested a decline in Commercial Real Estate construction through most of 2021, but a solid pickup in 2022.