Date: October 08, 2020
The Dodge Momentum Index rose 3.7% in September to 130.8 (the year 2000 = 100) from the revised August reading of 126.2. Both components of the Momentum Index rose during the month. The commercial component rose 3.9% while the institutional component moved 3.2% higher. The Momentum Index has made steady, albeit slow, progress since hitting a nadir in June. In the third quarter, the Momentum Index gained 2.2% over the previous three months. The commercial side of the Momentum Index gained 7.4% in the third quarter led by a large number of warehouse projects entering planning as e-commerce retailers such as Amazon Inc. continue to push projects forward. Somewhat surprising is that office projects entering planning also posted a tepid gain despite concerns that office work is shifting to remote settings. The institutional component, however, lost ground in the third quarter, dropping 6.8%. Education projects have borne the brunt of this drop as state and local government revenues declined, creating the need for budget cuts across the country.
Source: U.S. Glass