McGraw-Hill’s Dodge Momentum Index made a small gain in August, increasing to 118.8 (2000=100) for the month, up 0.2% from the July reading. The improvement in August is on the heels of a 5.7% decline in July, according to a press release from McGraw Hill Construction. The Momentum Index 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 Momentum Index is now 13.9% higher than one year ago, and continues to point to recovery in the sector.
The August rise in the Momentum Index was supported by a 5.0% increase in institutional building plans, while a 3.0% drop in commercial plans restrained further growth. Despite the drop in commercial building plans in August, five notable commercial projects valued at $100 million or more entered planning in the month. These include the $200 million DaniaLive Marketplace in Dania Beach Fla.; a $184 million office complex in New York; the $175 million North First Office complex in San Jose Calif.; the $110 million Champions Petfood warehouse in Auburn, Ky., and a $100 million mixed-use development in College Station Texas.