TL:DR

Composite OverviewComposite Overview

The Project Stress Index closed at 102.1 in December, marking an 18.7% decline from the previous month, as all three stress indicators moved lower.

Abandonments led the decrease, falling 27.2% from November levels, while bid date delays and on-hold activity declined by 12.0% and 10.0% respectively.

Compared to December 2024, the Project Stress Index has fallen 4.3%, driven by a 23.2% decrease in on-hold activity and a 9.8% fall in bid date delays. Abandonments remain 21.1% above their year-ago levels, partially offsetting the improvement in the other indicators.

The ConstructConnect Project Stress Index (PSI) composite chart is shown from December 2023 to December 2025. The PSI is a seasonally adjusted, equal-weight measure of delayed, on-hold, or abandoned projects. (Month-on-month changes of less than 0.25% are indicated as unchanged). Image: ConstructConnect

Sector Status UpdateSector Status Update

In 2025, the construction industry experienced distinct abandonment pressures. Liberation Day tariffs in June triggered a 67.7% month-over-month spike in private project abandonments as firms faced increased material costs.

The government shutdown in late 2025 disrupted the normal flow of federal funding, introducing volatility into public project abandonment counts. ConstructConnect will continue monitoring how the shutdown affects abandonment patterns.

About the Project Stress IndexAbout 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.

My Thoughts 💭My Thoughts 💭

Things are slowly turning around! Rates coming down and political stability can ensure more confidence in completed projects.