The Dodge Momentum Index rose 3.7 percent in September to 130.8 from the revised August reading of 126.2. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning. Both components of the Momentum Index rose during the month. The commercial component rose 3.9 percent while the institutional component moved 3.2 percent higher.
The Momentum Index has made steady progress since hitting a nadir in June. In the third quarter, the Momentum Index gained 2.2 percent over the previous three months. The commercial side of the Momentum Index gained 7.4 percent 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. The institutional component, however, dropped 6.8 percent.
In September, seven projects each with a value of $100 million or more entered planning. The leading commercial projects were a $120 million office project in San Jose, California, and a $110 million Georgia-Pacific distribution facility in De Pere, Illinois. The leading institutional projects were the $275 million EV Smith Research Center at Auburn University in Auburn AL and a $250 million arena in Palm Desert, California.
