The Dodge Momentum Index took another step forward in June, increasing 1.1 percent to 141.1 (2000=100) from its revised May reading of 139.6. June’s lift was due to a 4.8-percent advance by the institutional sector, while the commercial component fell 1.3 percent, according to Dodge Data & Analytics.
The Momentum Index is a monthly measure of the first report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. The index has exhibited substantial strength since mid-2016, with the institutional and commercial components trading off as the driver of growth almost on a month-to-month basis.
Although the commercial component declined in the latest month, it is 11.8 percent higher than it was in June 2016, while the institutional segment is 9.5 percent above a year ago. The overall rising trend for both sectors continues to suggest that construction activity will remain healthy through the end of the year.
In June, seven projects entered planning each with a value of $100 million or more.