May saw a substantial decline in abandonments as readings fell to 8-month lows. Between September and May, abandonment readings completed a “head and shoulders” pattern in which an initial string of lower readings was followed by a series of higher readings before again being followed by the latest lower readings.
| Delay Bid Date | On Hold | Abandoned |
|---|---|---|
(Month-on-month changes of less than 0.25% are indicated as unchanged)
Public and private projects often exhibit distinct stress trends due to their having different financing sources. Beginning in the first-half of 2024 and moving through to the present, public projects continue to report elevated levels of Bid Date Delayed and On hold activity while their private-sector equivalents remain flat to descending.
However, both sectors continue to report historically elevated levels of abandoned projects although these levels have fallen since reaching post-COVID peaks in late-2023 and early-2024.
The Project Stress Index (PSI) 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.
The PSI monitors nonresidential and multifamily projects in their preconstruction phases only and thus excludes 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 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.