Dodge Momentum Index Makes Further Gains in September
NEW YORK –October 7, 2013 – The Dodge Momentum Index advanced 2.9% in September to 118.3 (2000=100) according to McGraw Hill Construction, a division of McGraw Hill Financial. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. After a brief pause in June 2013, the Momentum Index resumed its upward trend in the most recent three months. Since the end of 2012, the Momentum Index has risen an impressive 31%, and in September it reached its highest level since the first quarter of 2009. This acceleration suggests that, as of September, owners and developers viewed the environment for construction as improving.
Once again, the two main components of the Momentum Index diverged in September. The demand for new commercial buildings rose dramatically over the month, boosted by recovering market fundamentals such as rents and occupancy rates. The commercial component of the Momentum Index jumped 8.5% in September thanks to increased plans for new office development. Among the larger commercial projects to enter the planning phase in September were a $150 million headquarters for Daimler in Portland OR, a $150 million, 53-story office tower in Chicago, and a $65 million office building for Public Service Electric and Gas Co in Newark NJ. The institutional segment of the Momentum Index retreated 2.5% in September, as a gain for healthcare projects was offset by a larger decline in plans for amusement and education buildings.
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McGraw Hill Construction provides essential data, news, insights, and intelligence to better inform construction professionals’ decisions and strengthen their market position. McGraw Hill Construction’s data, analytics, and media businesses – Dodge, Sweets, Architectural Record, and Engineering News-Record – create opportunities for owners, architects, engineers, contractors, building product manufacturers, and distributors to strengthen their market position, size their markets, prioritize prospects, and target and build relationships that will win more business. McGraw Hill Construction serves more than one million customers through its trends and forecasts, industry news, and leading platform of construction data, benchmarks, and analytics, including Dodge MarketShare™, Dodge BuildShare®, and Dodge SpecShare®. Construction data is available for North American and global markets. To learn more, visit www.construction.com.
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McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company's iconic brands include: Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.
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