Construction Spending is Increasing, According to New Indicator

Architectural Record reprts that a new 12-month indicator of construction spending for nonresidential buildings is on the rise. The Dodge Momentum Index (DMI) is derived from planning reports in McGraw-Hill Construction’s Dodge Reports.

The Dodge Reports gather a huge amount of information on projects prior to groundbreaking, differentiating the DMI from many other market indices and providing a more reliable predictor of nonresidential construction spending. The DMI reached a low point last summer at 77.1 (July 2011), but has steadily risen since then to reach 94.7 in April 2012. The vice president of economic affairs for McGraw-Hill Construction, Robert Murray, had this to say about the findings.

The relatively steady upward trend since the middle of last year suggests that construction spending put in place for nonresidential buildings should begin to move in a more consistently positive direction during the second half of 2012… This is good news for an industry that has been strongly hit by declines since the 2009 recession.

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source and image via Architectural Record