October Dodge Momentum Index reflects decline in institutional building

The Dodge Momentum Index slipped another 0.6 percent in October, due entirely to a decline in the institutional segment, according to McGraw-Hill Construction, a division of The McGraw-Hill Companies. The October Momentum Index retreated to 93.3, marking 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 of this year, with monthly gains outweighing setbacks. Declines over the past three months can be attributed in part to the high degree of uncertainty affecting the U.S. economy and construction industry, reflecting the U.S. presidential election and the looming fiscal cliff, according to an MHC release. In addition, plans for institutional building projects were particularly strong in recent months, but that strength dissipated in October given the continued tight budget conditions faced by states and localities.