Methodology of the Expansion Index
This construction Expansion Index is calculated by comparing the total dollar value of construction projects in planning for the current month to the number of projects in planning for that same calendar month in the prior year.
The Expansion Index measures the dollar volume of projects in ConstructConnect's extensive database for states and metropolitan statistical areas (MSAs) across the United States and Provinces/Territories and census metropolitan areas (CMAs) in Canada. This reflects all stages of preparation prior to construction field-work at the beginning of any given month this year versus what was calculated at the same time last year. The types of structures included in these calculations are multi-family residential, nonresidential building, and civil/heavy engineering.
An index value less than 1.0 indicates a market potential that is flat or declining, while an index value above 1.0 speaks of market potential that is increasing. An Index value of 2.0 or more indicates the market potential is significantly greater than a year ago.