NEW YORK – January 8, 2016 – The Dodge Momentum Index
rose 4.1% in December to 125.2 (2000=100) from its November reading of 120.3,
essentially reversing the 3.6% decline that took place in November. 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 December
rise in the Index was fairly evenly spread between a 4.7% increase for
institutional projects and a 3.6% increase for commercial projects. On a
year-over-year basis, the Index finished 2015 up 2.4% from its reading at the
end of 2014. The year-over-year change for the Index was dampened by a 6.7% decline
for commercial projects, as this sector settled back to a more sustainable pace
after surging 26.4% over the course of 2014. Renewed growth in planning
activity for the commercial sector is expected to take place in 2016, supported
by strong industry fundamentals such as vacancy rates and employment.
Institutional projects at the planning stage jumped 15.8% in December compared
to the same month a year ago, helped by the passage of recent construction bond
measures and the improved fiscal health of state and local governments.
There were a total of 10 projects entering planning in
December, each with a value that exceeded $100 million. For the commercial
building sector, the leading projects were a $176 million warehouse in
Shoemakersville PA and a $160 million office project in Washington DC. For the
institutional building sector, the leading projects were a $500 million
renovation project at Lincoln Center in New York NY and a $300 million hospital
project in St. George UT.
Source: Construction.com
No comments:
Post a Comment