The Dodge Momentum Index fell to 118.3 (2000=100) in June, down 1.3% from 119.9 in May, according to Dodge Data & Analytics.
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.
With the June decline, the Index continued its lackluster performance thus far in 2015, and is now up just 2.2% when compared to June 2014. Of the two major building sectors covered by the Index, commercial building has recently shown the most loss of momentum, sliding 2.6% in June. The economic weakness in the first quarter has likely played a role in the recent softness for this sector; at the same time, real estate market fundamentals remain favorable and can be expected to support a pickup in new plans for commercial buildings later this year.
On the positive side, the institutional building sector edged up 0.6% in June, showing an increase in planning activity for the second month in a row, and it now stands 10.1% above the same month a year ago.
Within the commercial building sector there were three projects that exceeded $100 million, including plans for the following:
- the $128 million Alexander Court office addition and renovation in Washington, DC
- the $110 million Wharf InterContinental Hotel also in Washington DC
- a $108 million warehouse in Boiling Springs, PA
