Index Measuring Future Construction Flat in May

New York, NY, June 8, 2015 -- The Dodge Momentum Index, a future indicator of non-residential construction spending, held steady at 122.3 in May, according to Dodge Data & Analytics.

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 firm said.

After rising during 2014, the Index thus far in 2015 has been basically flat, consistent with other measures highlighting sluggish economic conditions, Dodge said.

Even with this near term pause, the Index in May was still up 6.1% compared to the same month a year ago.

Several factors are expected to help the Index move beyond its current plateau and regain an upward track later in 2015, including further improvement by market fundamentals for commercial real estate and the increased funding support for construction projects coming from state and local governments, Dodge said.

In May, planning activity by sector was varied, with institutional building climbing 3.1% while commercial building fell 2.2%.

Within the institutional sector there were eight projects that exceeded $100 million.