by Calculated Risk on 1/11/2022 08:34:00 AM
From Dodge Data Analytics: Dodge Momentum Index Declines In December
Despite these declines, 2021 was a banner year for the Dodge Momentum Index — despite the lingering risks of COVID-19 and low demand for some types of nonresidential buildings. Throughout the year, the overall Momentum Index increased 23%, the strongest annual gain since 2005. Both the commercial and institutional components of the Momentum Index saw similar gains — with their levels of activity reaching 13- and 14-year highs, respectively.
This graph shows the Dodge Momentum Index since 2002. The index was at 166.4 in December, down from 170.7 in November.
According to Dodge, this index leads “construction spending for nonresidential buildings by a full year”. This index suggested a decline in Commercial Real Estate construction through most of 2021, but a solid pickup in 2022.