Construction Outlook Continues to Brighten

AIA’s Kermit Baker sees evidence that “both the architecture and construction sectors will remain healthy for the foreseeable future.”

NEW YORK CITY—The latest Dodge Momentum Index for first reports of nonresidential building projects in planning provides another indicator of a generally strong outlook for development and construction. The index from Dodge Data & Analytics, issued Tuesday, increased 1.1% to 141.1 from its revised May reading of 139.6. As a predictor, projects in planning generally lead construction spending for nonresidential buildings by a full year, according to Dodge Data.

Near term, the latest construction spending figures point to monthly fluctuations but an overall upward trend. The Census Bureau said earlier this month that total construction spending during May was at a seasonally adjusted annual rate of $1,230.1 billion, nearly the same as the upwardly revised April estimate of $1,230.4 billion. The May figure is 4.5% above the May 2016 estimate of $1,177.0 billion. During the first five months of this year, construction spending amounted to $469.2 billion, up 6.1% from $442.4 billion in the year-ago period.