Note: This index is probably a number one indicator for new non-residential Commercial Real Estate (CRE) funding, besides manufacturing.
From Dodge Data Analytics: Dodge Momentum Index Slips in August
The Dodge Momentum Index moved decrease in August, falling 2.four% to 129.1 (2000=100) from its revised July studying of 132.2. The Momentum Index is a month-to-month measure of the primary (or preliminary) report for nonresidential constructing tasks in planning, which have been proven to steer development spending for nonresidential buildings by a full yr. The decline in August could be attributed to an eight.7% drop in the business element of the Momentum Index, whereas the institutional element rose 7.three%. The business element has seen a steep rise over the previous yr as giant tasks – notably workplace buildings – entered the planning cycle. The August retreat for the business element brings planning exercise again to a degree extra in keeping with a sustainable tempo of improvement.
This graph exhibits the Dodge Momentum Index since 2002. The index was at 129.1 in August, down from 132.2 in July.
The index is just up 1.four% year-over-year.
According to Dodge, this index leads “construction spending for nonresidential buildings by a full year”. This suggests some additional will increase in CRE spending over the subsequent yr.
SOURCE: Calculated Risk – Read complete story here.