The Dodge Momentum Index fell 2.6% in November to 123.3 (the year 2000 = 100) from the revised October reading of 126.5. The institutional component of the Momentum Index fell 4.4%, while the commercial component lost 1.6%.
Since the expiration of support programs in the CARES Act, the economy has struggled to maintain traction and in its wake and planning for nonresidential building projects has slowed, according to Dodge Data & Analytics. As the next wave of COVID-19 infections quickly approaches, economic growth and job gains will ease further. Additionally, uncertainty over the potential for further federal stimulus has significantly complicated the recovery and will continue to negatively impact nonresidential building throughout the planning and construction processes, according to the firm.
In November, nine projects each with a value of $100 million or more entered planning. The leading institutional projects were the $320 million modernization of Jefferson High School in Portland, Ore., and a $235 million lab project at Schuylkill Yards in Philadelphia. The leading commercial projects were a $300 million commercial development on 5th Ave in New York and a $300 million warehouse project in Pittsburgh.
The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year.