Dodge Momentum Index Moves Higher in December

For the full year, the Momentum Index averaged 141.9, a decline of 3.7% from 2018’s average. In 2019, the commercial component was 2.3% lower than the previous year, while the institutional component dropped 5.9%. Last year’s slip in the dollar value of projects entering planning suggests that construction spending for nonresidential buildings could see a setback in the year to come. However, the Momentum Index did end the year on a high note indicating that a decline in 2020 construction is likely to be modest in nature.

In December, 13 projects each with a value of $100 million or more entered planning. The leading commercial projects were the $300 million Churchill Downs Hotel in Louisville KY and a $200 million Walmart distribution center in Topeka KS. The leading institutional projects were the $250 million Memorial Hermann Medical Center in Shenandoah TX and the $240 million Advent Health Hospital in Lenexa KS.