Construction outlook regains momentum
Old Man Winter put a temporary damper on nonresidential U.S. construction earlier this year, but vernal sunshine has reinvigorated plans for new projects.
Data compiled by McGraw Hill Construction shows that its Dodge Momentum Index gained 2.0 percent in May following April’s strong rebound, when the index advanced 8.4 percent after having retreated in February and March. Gains were steady during most of 2013, but harsh winter weather slowed overall economic growth in the first months of 2014. Now prospects for commercial development are again showing improvement, as reflected by the growing volume of planned projects.
The growing volume of commercial and institutional projects indicates nonresidential construction starts should be headed higher during the remainder of the year. The May index was bolstered by a 4.5 percent monthly gain in commercial planning projects, but the month’