The Dodge Momentum Index rose in October, climbing 13.2% to 130.9 (2000=100) from the revised September reading of 115.6. 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 move higher in October nearly reversed the erosion of the past four months (including September's 7.9% decline), with October posting healthy gains in both sectors. From September to October the commercial portion of the Momentum Index advanced 16.8%, while the institutional portion grew 8.3%. On a year-over-year basis, the Momentum Index is now 6.1% higher, with the commercial portion up 5.5% and the institutional portion up 6.9%. October's increase supports the belief that building activity has further room to grow during this cycle. While month-to-month activity could continue to be volatile, there are enough projects in the pipeline to sustain growth into 2018.

In October, 20 projects each with a value of $100 million or more entered planning. For the commercial building sector, the leading projects were a pair of Facebook data centers in Sandston VA valued at $400 million and $200 million respectively. The leading institutional projects were a $480 million hospital in Dallas TX and a $160 million hospital tower in Seattle WA.