By: Michael Guckes, Senior Economist on October 23rd, 2023
ConstructConnect's Project Stress Index - October 23
Project Stress Index Moves Higher On Rising Abandoned Project Readings: 122.7, +3.4%
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 October 21st, 2023, the Index registered 122.7, indicating that last week’s project stress conditions were 22.7% above their 2021 average level. The Index increased by 3.4% week over week, due almost entirely to elevated abandoned project activity. This movement overshadowed only minor movements in the weekly readings for delayed and on hold project activity. The week’s count of abandoned projects was 22% above same week, one-year-ago levels. This movement contrasts significantly with delayed and on-hold project levels, both of which are down over 12% from year-ago levels.
|Delay Bid Date||On Hold||Abandoned|
Sector Status Update: Public and private sector project stress results can trend independently of one another in large part due to their different funding mechanisms. There have been several notable trends in recent project stress by sector. In the last two weeks, readings for abandoned public-sector projects have reached their highest levels since 2021. This has occurred simultaneously with consecutive weeks of declining delayed bid date, and on hold readings. The latest private sector data signaled a continuation in elevated abandoned project counts in addition to a recent rising trend in the count of on hold projects.
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.