The Dodge Momentum Index retreated 0.8 percent in September compared to August,according to McGraw-Hill Construction.The Momentum Index is a monthly measure of the first report for nonresidential building projects in planning,which have been shown to lead construction spending for nonresidential buildings by a full year.
The September Momentum Index came in at 94.7,down from a revised 95.4 in August and 96.7 in July.While the longer term trend is still viewed as positive,the Index appears to be experiencing a temporary pause,according to MHC officials.Uncertainty,particularly related to the impending presidential election and year-end expiration of the Bush tax cuts combined with automatic spending cuts(the"fiscal cliff"),is likely the main contributor to this short-term hesitation in future development plans,according to an October 5 MHC release.
The uncertainty seems to be weighing more heavily on the commercial segment of the Index,which dropped by 5.4 percent in September.Institutional building,by comparison,rose by 4.0 percent.
