The Dodge Momentum Index fell 4.8%, to 125.2, in October from its September reading of 131.5. The October decline nearly reverses September’s 5.2% gain. In October, planning for institutional building projects dropped 4.5% after surging 10.6% in September, while commercial building projects retreated 5.0% after September’s 1.7% gain. Compared to the same month a year ago, the Momentum Index in October was still up 4.8%, with increases of 6.3% and 2.6%, respectively, for the commercial and institutional sectors. There were a total of eight projects entering planning in October with a value that exceeded $100 million. For the commercial building sector, the leading projects were a $50-million, mixed-use facility at the Mall of America in Minneapolis and a $151-million warehouse and distribution complex in Newark, N.J. For the institutional building sector, the leading projects were a $350-million hospital in Washington, D.C., and a $110-million hospital in Bethesda, Md. The Momentum Index is a monthly measure of the first report for non-residential building projects entering the planning stage, which has proven to be a leading indicator of construction spending for non-residential buildings by a full year.
Dodge Construction Momentum Index Declined 4.8% in October
November 11, 2015