Project abandonments have spiked recently across the country, according to a new analysis of construction project data contained in the ConstructConnect Project Stress Index for the week ending on March 31st.

Construction Dive has more on the latest economic indicators impacting nearly every sector of commercial architecture, including the startling revelation that outright abandonments have increased by 60% from 2021 base levels.

“Not many months after interest rates started rising in early 2022, the private sector was quick to respond with greatly heightened levels of abandoned projects,” Michael Guckes, ConstructionConnect's senior economist, explained. “This volatility, coupled with overall elevated weekly readings, has continued with little exception through present.”

However, the total number of privately funded abandoned projects was down 10.7% compared with the same month last year. Publicly funded projects were abandoned at a rate 40.8% higher than levels seen a year ago. Privately financed projects put on hold were also up by 105%. 

This news comes on the heels of a tumultuous 2023, which saw extended downturns for the industry fueled primarily by high interest rates. This month, we’ve reported on declines in nonresidential construction spending and the overall number of construction starts across the country for what was the second month in a row.