By: Michael Guckes, Senior Economist on August 22nd, 2023
ConstructConnect's Project Stress Index - August 21, 2023
Data released for the week ending August 19th provided further evidence of a strong construction industry as fewer projects reported faltering in their transition from concept to physical completion. All three measures of project stress declined in the latest weekly results. Historically the third quarter of the year marks the seasonal apex in on hold and abandoned project levels; however, 2023 levels thus far are on track to be their lowest since 2020. These encouraging results have come notwithstanding the rising precariousness of financial markets.
Projects with Delayed Bid Dates
Week-on-week delayed bid date project levels fell to their lowest level since at least 2020. Based on historic cyclical behavior, we expect the level of delayed projects to further decline in 2H2023.
Projects On Hold
The level of on hold projects in the third quarter remains generally unchanged. This is an encouraging development as recent results challenge the historic seasonal acceleration of third quarter on hold levels.
Abandoned project levels fell for a second consecutive week and are approaching 2020 lows. Similar to on hold results, abandoned project levels cyclically climax in the third quarter; however, the latest results have not expressed such behavior.
About the Project Stress Index
The Project Stress Index (PSI) monitors the level of U.S. construction projects, excluding single family residential, that have experienced a bid date delay, have been placed on hold, or have been abandoned over the last 30 days. Each component has been indexed against the average of their weekly values recorded during 2021. The independent tracking of each status type gives unique insights into the timing, direction, and amplitude of market changes.
Additional information about the PSI, including detailed data about the individual readings for delayed, on hold, and abandoned projects can be found here.
About Michael Guckes, Senior Economist
Michael Guckes is Senior Economist for ConstructConnect. He is an international speaker on the North American construction market. Michael has over a decade of economics-related experience in the construction and manufacturing industries.