by Calculated Risk on 12/07/2017 05:28:00 PM
Thursday, December 07, 2017
Note: This index is possibly a leading indicator for new non-residential Commercial Real Estate (CRE) investment, except manufacturing.
From Dodge Data Analytics: Dodge Momentum Index Remains Strong in November
The Dodge Momentum Index surged again in November, climbing 13.9% to 149.5 (2000=100) from the revised October reading of 131.3. 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. The November increase was the second month of strong gains after a four-month period of softness. November’s advance was the result of healthy gains in both the commercial and institutional sectors. From October to November, the commercial portion of the Momentum Index advanced 19.6%, while the institutional portion grew 5.5%. On a year-over-year basis, the Momentum Index is now nearly 21% higher, with the commercial portion up 24% and the institutional side up 17%. The turnaround in October and November suggest that building activity should continue to expand in 2018.Click on graph for larger image.
This graph shows the Dodge Momentum Index since 2002. The index was at 149.6 in November, up from 131.3 in October.
The index is up 21% year-over-year.
According to Dodge, this index leads "construction spending for nonresidential buildings by a full year". This suggests further growth into 2018.
Posted by Calculated Risk on 12/07/2017 05:28:00 PM