Project Planning Outlook Eases After Strong Q4

Construction expansion is expected to continue “at a modest pace” in 2018, Murrays says.

NEW YORK CITY—The year got off to a sluggish start from the standpoint of construction spending, as Dodge Data & Analytics’ newly issued Dodge Momentum Index of nonresidential projects in planning dropped 5.1% in January to 143.7 from a revised reading of 151.5 in December. Yet Dodge Data sees the lower reading as a return to a more sustainable level following an especially strong fourth quarter.

The commercial component of the Momentum Index was 7.8% lower in January, while the institutional component was down 0.9%. However, on a year-over-basis January’s index was up 7.7%, with both the commercial and institutional components showing growth over January 2017. This suggests that nonresidential building construction should continue to post moderate gains in 2018, according to Dodge Data.