Dodge Momentum Index continues to gain in January
The Dodge Momentum Index rose 2.7 percent in January, according to McGraw-Hill Construction, a division of The McGraw-Hill Companies. 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 January increase for the Momentum Index marked its second monthly gain in a row, lifting it to 97.6: the highest reading since mid-2010. This recent upturn follows a moderate decline for the Momentum Index that took place from August through November, when uncertainty related to the November 2012 elections and the looming fiscal cliff generally dampened investment. With the election results final and the fiscal cliff averted for the time being, plans for nonresidential building projects that may have been deferred are now moving ahead at a quicker pace, according to an MHC release.