More Good News On The Economic Front
December 8, 2016
For the tenth time in the past 12 months, the Dodge Momentum Index advanced, rising 0.3 percent in November.
The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning. These reports have been shown to lead construction spending for nonresidential buildings by a full year.
Overall, the Momentum Index is 18 percent higher than its November, 2015, reading. According to Dodge, this indicates that “construction activity should continue to strengthen in 2017.”
By sector, the commercial building component rose 4.1 percent in the month, while the institutional component fell 5.2 percent. Dodge said “Institutional planning had shown strength earlier in 2016, but has since receded, and is now 2 percent lower than last year. Commercial planning, on the other hand, had a very weak start to the year, but has since moved forward and is now 35 percent above last year.”
In other economic news, November’s jobs report from the Bureau of Labor Statistics showed growth in the construction industry with the addition of 19,000 jobs, predominantly among residential specialty trade contractors. Over the past three months, the report added, “construction has added 59,000 (jobs), largely in residential construction.”