Dodge Momentum Index Pauses in June
NEW YORK –July 9, 2013— The Dodge Momentum Index receded in June from the previous month, 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 six consecutive monthly increases, the Momentum Index in June slipped 1.5% to 113.8, down from a revised reading of 115.5 for May. The June pause came after May produced the highest level for the Momentum Index since March 2009, and indicates that the rising trend for nonresidential building remains subject to the occasional setback. As shown by such market fundamentals as vacancy rates, the commercial building sector is getting healthier, but the improvement continues to occur at a gradual and hesitant pace.
The June Momentum Index revealed a mixed reading for its two major components, as a sharp increase in plans for institutional buildings offset a drop in commercial development. New plans for institutional buildings rose 6.5% in June, bolstered by several amusement-related projects. Among the larger amusement and leisure developments to enter planning in June were the $250 million Monarch Hotel and Casino in Black Hawk CO and a $200 million expansion of the Sacramento Convention Center in California. The largest institutional project overall to enter the planning phase in June was a $400 million casino project in Liberty NY. The developer of the casino has said that the site in upstate New York could be ready for construction soon if the necessary state and local approvals are expedited. Meanwhile, the commercial building segment in June fell back 8.5% compared to May. Declines in both office and retail-related development weighed on overall commercial building plans.
About McGraw Hill Construction:
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 http://www.construction.com.
About McGraw Hill Financial:
McGraw Hill Financial, a financial intelligence company, is a leader in credit ratings, benchmarks, and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power, McGraw Hill Construction, and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.
Kathy Malangone, Senior Director, Marketing Communications,
McGraw Hill Construction, +1 212-904-4376, email@example.com