Dodge Momentum Index Moves Higher in October

NEW YORK, N.Y. – The Dodge Momentum Index grew 4.1 percent in October to 133.6 from its revised September reading of 128.3 (2000=100). The 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.

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 commercial component of the Momentum Index rose 6.1 percent in October, and is 20 percent 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 index increased 1.4 percent in the month, and is now 10 percent 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, New Jersey and a $250-million office tower in Somerville, Massachusetts. The leading institutional projects were a $250-million hospital in New York, New York and a $140-million high school in Upper Arlington, Ohio.