Construction Momentum Dips in October
Planning begins for: $200 million office complex on the East Coast; $100 million Amazon warehouse in the Pacific Northwest; Two research labs valued at $300 million each in the Northeast.
NEW JERSEY – The Dodge Momentum Index fell 1.8% in October to 127.5 (2000=100) from the revised September reading of 129.8. 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 commercial component of the Momentum Index lost 4.4% over the month, but the institutional component gained 3.3%.
The Momentum Index has struggled to make consistent gains since passing its post-pandemic low in June. Economic growth has slowed over the past few months, creating weaker demand for commercial projects. The fear about a new wave of COVID-19 infections may also be impeding planning activity in consumer-focused projects such as hotels and retail, although planning for warehouse projects continues to impress. Even with this month’s gain, the institutional component of the Momentum Index remains well below levels seen prior to the pandemic as state and local entities come to grips with the widening budget chasm.
New Large Projects Enter the Pipeline:
In October, 10 projects each with a value of $100 million or more entered planning. The leading commercial projects were a $200 million office complex in New York NY and a $100 million Amazon warehouse in Spokane, WA. The leading institutional projects were two research labs valued at $300 million each, associated with the Dorchester Bay City project - a redevelopment of the Bayside Expo Center in Boston MA.
About Dodge Data & Analytics
Dodge Data & Analytics is North America’s leading provider of commercial construction project data, market forecasting & analytics services and workflow integration solutions for the construction industry. Building product manufacturers, architects, engineers, contractors, and service providers leverage Dodge to identify and pursue unseen growth opportunities that help them grow their business. On a local, regional or national level, Dodge empowers its customers to better understand their markets, uncover key relationships, size growth opportunities, and pursue specific sales opportunities with success. The company’s construction project information is the most comprehensive and verified in the industry. Dodge is leveraging its more than 125-year-old legacy of continuous innovation to help the industry meet the building challenges of the future. Learn more at www.construction.com.
Media Contact
Nicole Sullivan | AFFECT Public Relations & Social Media
+1-212-398-9680, nsullivan@affectstrategies.com
Greg Gies | Dodge Data & Analytics | Director Product Marketing | greg.gies@construction.com
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