December Uptick for Dodge Momentum Index
Reversing direction from November's decline, the Dodge Momentum Index, rose 4.1% in December. The Index is a monthly measure of initial reports for nonresidential construction projects in planning. According to a news release from Dodge Data & Analytics, the uptick was evenly spread between a 4.7% increase for instiutional projects and 3.6% for commercial construction projects.
The December Index hit 125.2 compared to 120.3 in November.
The year-over-year change was dampened by a 6.7% decline for commercial projects. This sector surged 26.4% in 2014, but is now on a more "sustainable pace", according to the Dodge Data news release.
Strong industry fundamentals (vacancy rates, employment) should drive renewed planning growth in the commercial sector in 2016. Recent construction bond measures and improved fiscal health of state and local governments helped support a 15.8% jump in December for institutional projects at the planning stage, compared to December 2014.
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