Construction project stress cools after ‘turbulent year’

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After a uneven 12 months stuffed with uncertainty, development mission stress eased sharply in December, in response to the most recent knowledge from Cincinnatti-based ConstructConnect.

The Project Stress Index, a measure of development tasks which have been paused,  deserted or have a delayed bid date, declined 18.7% to finish 2025. The extent nonetheless hovers about 2.1% above the 2021 baseline, however the drop marks one of many lowest stress ranges recorded in 2025, Devin Bell, affiliate economist at ConstructConnect, instructed Development Dive.

“December noticed a lower in all three stress indicators,” Bell mentioned. “The broad enchancment suggests confidence within the trade as we enter the brand new 12 months, following a turbulent 12 months marked by tariffs, a largely stagnant labor market and a historic authorities shutdown.” Undertaking abandonments plunged 27.2% in December, whereas builds placed on maintain dropped 10% and delayed bid exercise was down 12%. That’s a large turnaround from the stress degree seen in November, when each abandonments and on-holds spiked largely because of tariff impacts.

However the enchancment in total stress failed to shut the divide between private and non-private work, mentioned Bell.

On a year-over-year foundation, non-public mission abandonments elevated 15.1%, Bell instructed Development Dive. That coincides with the latest hiring and business outlook from the Related Basic Contractors of America, which indicated weak spot in development markets outdoors knowledge heart and energy tasks.

“Non-public sector abandonments surged as companies confronted increased material costs,” mentioned Bell. “Later in 2025, the federal government shutdown disrupted federal funding, bringing volatility into public abandonment counts.”