This audio is automatically generated. Please let us know if you have any comments.
After a hectic year filled with uncertainty, construction project stress eased sharply in December, according to the latest data from Cincinnati-based ConstructConnect.
The Project stress indexa measure of construction projects that have been stalled, abandoned or have a delayed bid date, declined 18.7 percent through the end of 2025. The level is still about 2.1 percent above the 2021 baseline, but the drop marks one of the lowest levels of stress on record in 2025, said Devin Bell, associate economist at Construction DiConnect.
“December saw a decrease in all three stress indicators,” Bell said. “The broad improvement suggests confidence in the industry as we head into the new year, following a turbulent year marked by tariffs, a largely stagnant labor market and a historic government shutdown.” Project abandonments fell 27.2% in December, while suspended construction fell 10% and delayed bidding activity fell 12%. This is a massive change from the stress level seen in November, when both dropouts and retentions increased largely due to the tariff impact.
But the improvement in overall stress failed to close the gap between public and private work, Bell said.
Year over year, private project abandonments were up 15.1%, Bell told Construction Dive. This matches the latest recruitment and business prospects from the Associated General Contractors of America, which indicated weakness in construction markets outside of data center and energy projects.
“Private sector exits increased as businesses struggled increase in material costs“Later in 2025, the government shutdown interrupted federal funding, causing volatility in the public dropout count.”
