The Dodge Momentum Index grew 4.1% in October to 133.6 from its revised September reading of 128.3 (2000=100). October’s gain nearly reversed the loss in September, and returns the Momentum Index to the rising trend that began earlier in the year.
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 commercial component of the Momentum Index rose 6.1% in October, and is 20% above last year. This suggests that despite being in a more mature phase of the building cycle, commercial construction has room for further growth in the coming months. The institutional component of the Momentum Index increased 1.4% in the month, and is now 10% higher than one year ago.
In October, 12 projects entered planning each with a value that exceeded $100 million. For the commercial building sector, the leading projects were a $270 million office building in Jersey City NJ and a $250 million office tower in Somerville Mass. The leading institutional projects were a $250 million hospital in New York and a $140 million high school in Upper Arlington Ohio.
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