By: Michael Guckes, Senior Economist on October 31st, 2023
ConstructConnect's Project Stress Index - October 30
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 October 29th, 2023, the Index registered 120.2, indicating that last week’s project stress conditions were 20.2% above their 2021 average level. The Index decreased by 2.0% week over week, due in large part to the first substantial decline in abandoned project activity in the last 10 weeks. Additionally, the weekly level of on hold activity rose slightly while bid date delayed activity was nearly unchanged.
|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 by sector. During October both public and private projects experienced elevated levels of on hold activity. While this rise is in keeping with the seasonal behavior of public projects, since at least 2019 no such similar seasonal behavior has been observed among private projects, making its latest rise notable. This week’s decline in abandoned activity was largely the result of a decline in abandoned public project activity. Similar to 2021, a combination of both abandoned private and public projects at present is driving this metric higher. However, the current level of abandoned activity within both sectors is greater now than it was at this time in 2021.
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.