Dodge Momentum Index Inches Lower in February

The Dodge Momentum Index moved 1.8 percent lower in February to 148.7 (2000=100) from the revised January reading of 151.4. 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. The drop in February was the result of declines in both components of the Momentum Index, with the commercial component losing 2.1 percent and the institutional component declining by 1.2 percent.

While the overall Momentum Index has declined for two consecutive months, it remains 11 percent higher on a year-over-year basis. The commercial component is 20 percent higher than a year ago, while the institutional component is 2 percent lower. This continues to suggest that construction activity should remain near its recent highs in 2020.