By: Michael Guckes, Senior Economist on November 13th, 2023
ConstructConnect's Project Stress Index - November 13
Project Stress Index registered 120.2, indicating that last week’s project stress conditions were 20.2% above their 2021 average level.
COMPOSITE OVERVIEW: The project stress index composite represents an equal-weight measure of the seasonally adjusted level of pre-construction projects that have experienced a delayed bid date, have been placed on hold, or have been abandoned in the last 30-days. For the week ending November 13th, 2023, the Index registered 117.2, indicating that last week’s project stress conditions were 17.2% above their 2021 average level. The Index increased by 2.0% week over week, giving back almost half of the Index’s fall from the prior week. The week’s reading was driven higher by a 5.1% and 1.5% increase in abandoned and delayed bid projects respectively. The level of on hold projects decreased by nearly 1% in the latest result. During the last seven weeks abandoned project activity has been the greatest single driver of the Index’s elevated readings.
|Delay Bid Date||On Hold||Abandoned|
Sector Status Update: Public and private sector project stress results can trend independently of one another in part due to their different funding mechanisms. There have been several notable trends in recent project stress data by sector. Since reaching a 1-year high in early October, the absolute level of public projects put on hold has steadily declined which is in keeping with its annual seasonal movement. Compared to the same week in 2022 and 2021, there are 15% fewer and 1% more such projects respectively. The latest abandoned projects data reported a decline in public counts; however, this decline was more than offset by the rising level of abandoned private projects. The present level of private and public abandoned projects as compared to the same week last year are up by 13% and 7% respectively and even more when compared to 2021 levels.
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.