COVID-19 Trips Up Dodge Momentum Index in April

COVID-19 had a significant negative impact on the economy in April, touching virtually all sectors, including construction

Dmi Graph

The Dodge Momentum Index moved 6.0% lower in April to 135.9 (2000=100) from the revised March reading of 144.5. The Momentum Index, issued by Dodge Data & Analytics, 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. Both components of the Momentum Index pulled back during the month – the commercial component fell 7.6%, while the institutional component dropped 3.2%.

COVID-19 (Coronavirus) had a significant negative impact on the economy in April, touching virtually all sectors — including construction. Planning activity clearly downshifted, although that downshift has not been fully realized in the published index since the Momentum Index is a three-month moving average. This sets the stage for an even weaker reading when the May data is released in June.

[PODCAST] How Much First Quarter GDP Report Dampens 2020 Construction Forecast

Dmi ChartIn April, six projects each with a value of $100 million or more entered planning. The leading commercial projects were a $380 million office building in San Jose CA and the $100 million Dream Hotel in Las Vegas NV. The leading institutional projects were a $365 million medical building in Houston TX and the $100 million Harrisburg University Health Science Education Center in Harrisburg PA.

Dodge Data & Analytics COVID-19 (Coronavirus) Resources: https://www.construction.com/toolkit

Dodge Data GDP Reforecast: How We Will Recover from this Recession

Latest
Dhi Canada Logo 2016 Big
DHI Canada Fall Technical School
November 15, 2020November 20, 2020