Steel Markets
January 8, 2020
Dodge Index Indicates Potential Setback for Construction Spending in 2020
Written by Sandy Williams
A leading indicator of nonresidential construction spending rose in December, but yearly data suggests construction spending may see a slowdown in 2020. The Dodge Momentum Index, a monthly measure of the initial report for nonresidential building projects in planning, gained 1.5 percent last month for a reading of 156.2. Planning for institutional projects rose 2.3 percent, while the commercial component rose 0.9 percent.
The Momentum Index averaged 149.9 in 2019, a decline of 3.7 percent from the previous year. The average for the institution component fell 5.9 percent and the commercial component 2.3 percent compared to the averages in 2018.
