The Dodge Momentum Index slipped another 0.6% over the month of October, according to McGraw-Hill Construction, a division of The McGraw-Hill Cos. 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.
The October Momentum Index retreated to 93.3 (2000 = 100), the third consecutive monthly decline following the most recent peak of 96.0 in July. After bottoming out in mid-2011, the Momentum Index had shown a hesitant upward trend through July, with monthly gains outweighing setbacks. The recent loss of momentum for the index over the past three months can be attributed in part to the high degree of uncertainty affecting the U.S. economy and the construction industry, reflecting the U.S. presidential election and the looming fiscal cliff.