By: Michael Guckes, Senior Economist on November 27, 2023
ConstructConnect's Project Stress Index - November 27
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 27th, 2023, the Index registered 121.8, indicating that last week’s project stress conditions were nearly 22% above their 2021 average level. The Index decreased by only 1.0% week-over-week, allowing it to extend its elevated plateau of readings which first began in October. The latest readings reported no significant change in delayed bid date and on hold project activity, and only a modest decline in abandoned project activity compared to the week prior. This year’s average November reading of 119.2, while high by historical standards, was 3.5% below the average November reading of 2022.
|Delay Bid Date
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 at least October, the level of public projects that have either experienced a delayed bid date, or that have been put on hold, has slowly declined which is directionally consistent with historic seasonal norms. Furthermore, the current level of abandoned public projects is consistent with past years’ results for this time of the year. Recent stress readings within the private sector in contrast have been far more volatile with current levels of on hold and abandoned projects well above comparable levels from previous years.
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.