North America has received an overall score of 0.64 in GlobalData’s January 2022 Construction Project Momentum Index, which provides an assessment of the health of the construction project pipeline at all stages of development from announcement through to completion.
Every construction project in GlobalData's database is assigned a score of between 5 and -5 based on its current progress, a score that is continually updated over time. These are then weighted by the value of each project in order to arrive at overall scores for countries, regions and sectors.
That score puts North America in sixth place out of 11 regions, and is a decrease on its score from December 2021 (0.71) when it ranked in fifth place.
One reason for North America's relatively poor performance in the index is its energy and utilities sector, which scores just 0.25, putting it in ninth place out of 11 regions worldwide.
North America's infrastructure sector, by contrast, has performed somewhat better, with a score of 1 (putting it in third place globally).
Within North America, the problems in the construction sector are most significant in the US, which scores just 0.6 in the index. The situation in Canada, however, is somewhat better, with a score of 0.7.
The Construction Project Momentum Index
GlobalData's Construction Project Momentum Index is based on analysis of thousands of individual construction projects around the world.
Each project is continually monitored for updates, with updates indicating progress increasing the project's score, while updates indicating delays or cancellations reduce the score. The score always sits between 5, the best possible score, and -5, the worst.
The scores for individual projects are then weighted based on their significance in order to create combined indices for each region or sector.
Events that can reduce a project's score include the project being cancelled or put on hold, delays, the rejection of applications or tender bids, or the reduction of the project's scope.
Events that can increase a project's score in the index, by contrast, include the completion or commencement of construction, the awarding of major contracts, or the approval of applications.
As well as a global overview of the Construction Project Momentum Index, Investment Monitor has broken down our coverage on a regional basis: