February 15, 2021

Dodge Momentum Index Uneven In January

The Dodge Momentum Index gained 3.1% in January, moving to 139.4. This was up from the revised December reading of 135.2. The commercial component of the index was up 9.9%. The institutional component was down 11.7%.

Describing the asymmetry last month, Dodge Data & Analytics stated, “January’s increase marked the highest level in the Momentum Index since the COVID-19 pandemic began. While certainly positive news, the Momentum Index is also sending a warning that the construction sector’s recovery may be very uneven in the months ahead. Institutional planning hit its lowest level since the Momentum Index began in 2002 as state and local governments pull back on building plans in the wake of growing budget deficits. Conversely, commercial planning is at its highest level since before the Great Recession, fueled by an increasing number of warehouse projects and to a somewhat lesser degree office projects. On a year-over-year basis the overall Momentum Index is 2.2% below January 2020. The commercial component is up 12.3% year-over-year, while the institutional component is down 27.7%.”