The Dodge Momentum Index increased 4.0 percent in December from a downwardly-revised November reading. The increase was broadly based, with both commercial and institutional seeing gains in the month.
Investment and Spending Growth
The Dodge Momentum Index (DMI) rose 4.0 percent to 128.7 in December, despite November’s downward revision to 123.8. With this month’s positive reading, the DMI ended 2014 up 17 percent year-over-year.
The gain in
DMI suggests structure investment will continue to grow this year. We expect structure investment to increase 5.1 percent in 2015 and continue to strengthen in 2016. However, the drop in oil prices poses a downside risk to our forecast.
Broad-Based Growth Across Sectors
DMI’s December increase was a result of broadly-based gains in both sectors. Commercial building planning saw a 4.1 percent increase, while institutional increased by 3.8 percent. On a year ago basis, they are up 31.4 percent and 1.5 percent, respectively.
During the month, commercial building planning saw a pickup in notable projects, which included the Google Campus in Boulder, CO, the Monarch Hotel in Black Hawk, CO and four phases of the Cannon House office renewal in Washington, D.C.