Dodge Momentum Index Dips in July

The Dodge Momentum Index dropped 3.3 percent in July to 135.0 from its revised June reading of 139.6, according to Dodge Data and Analytics. The decline was due to a 6.6-percent decrease in the institutional component, while the commercial component fell 1.1 percent.

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.

“This month continues a recent trend of volatility in the Momentum Index where a string of gains is interrupted by a step backwards in planning intentions,” a release from Dodge reads. “Despite the decline from June to July, the Momentum Index is 6.9 percent higher than one year ago, which suggests further moderate gains in construction activity throughout the year. The commercial component of the Momentum Index is 8.0 percent higher than last year, while the Institutional component is 5.3 percent higher.”

In July, nine projects entered planning each with a value of $100 million or more.