Project stress rose again in April with the private sector nearing a multi-year high in abandonments, according to the latest data from Cincinnati-based ConstructConnect.

The Project Stress Index, a measure of construction projects that have been paused, abandoned or have a delayed bid date, climbed 1.5% in April. The jump marks a 16% increase over 2021 baseline levels, said Devin Bell, associate economist at ConstructConnect.

“Stress on private projects has largely diverged from the public sector,” said Bell. “The private sector has been very quick to feel the shock of recent changes to the country’s economic outlook, with on-hold and abandonment activity up sharply in recent months. Conditions within the public sector remain far more muted.”

The April increase largely stemmed from a 4.6% rise in delayed bid activity and a 1.5% uptick in abandonments, said Bell. Meanwhile, on-hold activity dipped 2%, offering only modest relief.

Over the past 12 months, private projects placed on hold jumped 40%, while abandonments ticked up 14.1%.

“Abandonment activity continues to be a major force within the construction climate,” said Bell, contrasting public and private jobs. “Both sectors experienced increases in abandonments in April with the private sector nearing a multi-year high. High interest rates, potentially raised material costs and a tumultuous labor market are sapping the confidence of prospective owners and developers.”

Public construction continues to show greater stability, according to the data. The number of public projects placed on hold dropped 29% year over year, while abandonments remained essentially flat. 

Nevertheless, the overall index remains 6.5% lower than it was at this time last year, suggesting construction stress levels are still below their early 2024 peak.