Dodge Index Impacted by Coronavirus

The Dodge Momentum Index fell 6.0 percent in April to 135.9. The monthly index by Dodge Data & Analytics measures the first report for nonresidential building projects in planning, which has been shown to lead construction spending by a full year. The commercial component of the index fell 7.6 percent, while the institutional component slid 3.2 percent.

“COVID-19 (coronavirus) had a significant negative impact on the economy in April, touching virtually all sectors — including construction,” wrote Dodge Data & Analytics. “Planning activity clearly downshifted, although that downshift has not been fully realized in the published index since the Momentum Index is a three-month moving average. This sets the stage for an even weaker reading when the May data is released in June.”