Project abandonments remain on an upswing across the country, according to an analysis of construction project data in the latest ConstructConnect Project Stress Index for the week ending April 27th. Over the past month, Delayed Bid, On Hold, and Abandoned activity have increased by 4%, 7%, and -6%, respectively. The number of Abandoned projects in the public sector is now up 44% when compared to year-ago levels.
Meanwhile, ConstructionConnect says: “The PSI continues to trend within a narrow range of between 120 and 130, indicating a steady level of industry project stress that is 20% to 30% greater than our 2021 base period."
“We traded a more severe form of stress for a lesser form of stress,” said Michael Guckes, senior economist at ConstructConnect, told Construction Dive in reference to last month's more concerning declines. “[This] is a positive. We would rather see more on-holds than abandonments. For this reason, it has been harder for us to be excited about the latest decline in abandonment activity."
The trends match those represented in the recently published Dodge Momentum Index (DMI) for April, which rose 6.1% for the month largely thanks to a strong showing in the commercial sector. Construction starts of nonresidential buildings were also down by 9% for the month. Another analysis of U.S. Census Bureau data from the Associated Builders and Contractors (ABC) has shown nonresidential construction spending to have increased moderately by 0.2% in March overall.
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