Jun
08
Economy Watch: Nonresidential Construction Still Has Momentum
ByMay’s increase in nonresidential building projects suggests further growth in construction activity in 2016 despite first-quarter market volatility.
Credit: Dodge Data & Analytics, Dodge Momentum Index, May 2016
The Dodge Momentum Index rose 2.4 percent in May to 119.4 from its revised April reading of 116.6 (2000 = 100). The index, published by construction industry data specialist Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which leads construction spending for nonresidential buildings by a full year.
The increase for the index in May was due to a 6.5 percent gain for projects entering planning in the commercial sector, which more than offset a 3.4 percent decline for such projects in the institutional sector. May’s increase places the overall index 3.6 percent higher than a year ago, suggesting further growth in construction activity in 2016 despite the subdued first-quarter GDP and lending standards that are beginning to tighten for commercial projects…
Economy Watch: Nonresidential Construction Still Has Momentum
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