The Dodge Momentum Index moved 4.2 percent lower in October to 150.5 (2000=100) from the revised September reading of 157.0. The index is a monthly measure of the initial report for North American nonresidential building projects in planning, published by analytics and workflow provider for the construction industry Dodge Data & Analytics, which has been shown to lead construction spending for nonresidential buildings by a full year.
October’s decline was the third-consecutive monthly decline and the result of losses in both components of the Momentum Index. The commercial component fell by 4.9 percent from September to October, while the institutional component dropped 3.1 percent.
The commercial component has, in fact, been the impetus behind the recent string of declines in the overall index. This is consistent with the view that the commercial building sector is approaching a peak and should begin to gradually ease back over the coming year. The institutional component, meanwhile, has been relatively more stable due to the availability of public funds for projects such as schools and airport terminals.
In October, 10 projects each with a value of $100 million or more entered planning. The two leading commercial projects were a $300 million industrial park in Frederickson, Washington, and a $154 million warehouse in Wilkes-Barre, Pennsylvania. The two leading institutional projects were a $198 million school in Newburgh, New York, and a $105 million high school in Junction City, Kansas.