Dodge Momentum Index Rises In January February 17, 2021
The Dodge Momentum Index increased 3.1% in January to 139.4 (the year 2000 = 100) from the revised December reading of 135.2. The commercial component of the Momentum Index moved 9.9% higher, offsetting an 11.7% decrease in the institutional component. 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%. Source: U.S. Glass
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