Dodge Momentum Index Increases Again In August September 09, 2020
The Dodge Momentum Index increased 1.8% in August to 126.5 (the year 2000 = 100) from the revised July reading of 124.2. In August, the commercial component rose 3.3%, while the institutional component moved 1.2% lower. The August increase in the overall Momentum Index is the second consecutive rise and a further sign that the construction sector continues to post a modest recovery following the large declines in April and June. This recovery, though, is uneven. The commercial component has risen 9% from its June low and is just 13% below its 2018 peak, fueled by increased planning activity for warehouse and office projects. The institutional component, however, has declined for five consecutive months and has yet to hit bottom. The institutional component is now 34% below its recent peak. The public side of the building market is suffering as state and local government revenues have declined, creating budget cuts across the country. This has led to a significant pullback in education projects entering planning, placing substantial downward pressure on the institutional component of the Momentum Index. Source: U.S. Glass
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