Project Stress Index Rises 11.4% in May, Fueled by Abandoned Projects

Read this article to understand the level of U.S. nonresidential construction projects that have been delayed, on hold, or abandoned.

Composite Overview 

The Project Stress Index (PSI) composite closed May 2025 at 122.8, representing an 11.4% month-on-month increase. This rise was fueled by a 30.3% increase in abandonment activity, while bid-date delays decreased 1.9% and on-hold activity saw negligible change.

Since year-end 2024, we have seen abandonment activity rise 66.5%, bid-date delays increase 4.3%, and on-hold activity declined 18.5%.

While bid-date delays and on-hold activity are still within historic norms, abandonment activity has climbed to its highest level since early February 2024.

Conversely, same-month abandonment and on-hold activity fell 11.1% and 13.3% in 2024, while bid-date delays grew less than 1%.

Comparing May 2024 to May 2025, we see pronounced differences in both bid-date delays and abandonment activity patterns. We believe that significant changes in market outlook, along with elevated and sustained interest rates, are having a growing impact on projects in their preconstruction phases.

Components Monitor

Delay Bid Date 103.4	On Hold 93.5	Abandoned 171.5

(Month-on-month changes of less than 0.25% are indicated as unchanged)

The Project Stress Index Composite. A seasonally adjusted, equal-weight measure of delayed, on-hold, or abandoned projects. Image: ConstructConnect

Sector Status Update

Due to the different market forces influencing them, public and private projects often exhibit distinct stress trends. May 2025 data showed a decrease in bid date delays in both sectors, though public sector levels remain near pattern highs.

On-hold activity has diverged, with public project levels increasing from cyclical lows. In contrast, private on-hold activity has fallen significantly after an uptick from February to April 2025.

The level of private sector abandonments accelerated in May, rising sharply in April. Current abandonment activity is at its highest level in recorded history, which began in mid-2019. While public abandonment activity is also elevated at this time, it remains within its historic range.

READ THE FAQs on The Project Stress Index

About the Project Stress Index

The Project Stress Index (PSI) composite represents an equal-weight measure of the seasonally adjusted level of preconstruction projects that have experienced a delayed bid date, been placed on hold, or abandoned in the last 30 days. The PSI only monitors nonresidential and multifamily projects in their preconstruction phases, thus excluding any single-family home construction. Each component has been seasonally adjusted and then indexed against its 2021 average weekly reading. The independent tracking of each status type gives unique insights into market changes’ timing, direction, and amplitude. Additional information about the PSI, including detailed data about the individual readings for delayed, on-hold, and abandoned projects, can be found here.