After a choppy year filled with uncertainty, construction project stress eased sharply in December, according to the latest data from Cincinnatti-based ConstructConnect.
The Project Stress Index, a measure of construction projects that have been paused, abandoned or have a delayed bid date, declined 18.7% to end 2025. The level still hovers about 2.1% above the 2021 baseline, but the drop marks one of the lowest stress levels recorded in 2025, Devin Bell, associate economist at ConstructConnect, told Construction Dive.
“December saw a decrease in all three stress indicators,” Bell said. “The broad improvement suggests confidence in the industry as we enter the new year, following a turbulent year marked by tariffs, a largely stagnant labor market and a historic government shutdown.” Project abandonments plunged 27.2% in December, while builds put on hold dropped 10% and delayed bid activity was down 12%. That’s a massive turnaround from the stress level seen in November, when both abandonments and on-holds spiked largely due to tariff impacts.
But the improvement in overall stress failed to close the divide between public and private work, said Bell.
On a year-over-year basis, private project abandonments increased 15.1%, Bell told Construction Dive. That coincides with the latest hiring and business outlook from the Associated General Contractors of America, which indicated weakness in construction markets outside data center and power projects.
“Private sector abandonments surged as firms faced increased material costs,” said Bell. “Later in 2025, the government shutdown disrupted federal funding, bringing volatility into public abandonment counts.”
