The Dodge Momentum Index climbed 8.1% in July after retreating a revised 2.4% in June, according to McGraw-Hill Construction, a division of The McGraw-Hill Companies. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning. Combined, these projects have been shown to lead construction spending for nonresidential buildings by a full year. The Momentum Index for July came in at 98.8 (2000=100), up from June's revised level of 91.4. This month's improvement in the Momentum Index is consistent with last week's employment report, which showed a stronger than expected increase of 163,000 jobs. Although further increases in the index would be needed to suggest a true rebound in construction, this month's gain could be considered a first step in that direction.

Both the commercial and institutional components of the Dodge Momentum Index rose in July. The institutional building segment of the Momentum Index advanced 9.0% in July after a sharp 11.2% decline in June. An uptick in new planning projects for education buildings (+5.8%) aided the gain in institutional building, although two new hospitals (one in Connecticut and one in California) dominated the projects entering planning. The commercial building segment of the Momentum Index climbed 7.3% in June, even stronger than last month's revised 6.7% improvement. Commercial building was helped by a small 2.5% gain in new plans for office projects. One of the projects contributing to this increase was Apple's new plan for expansion of its Austin, TX campus.