"Report" performance to the project team is perhaps too formal, but I would certainly discuss performance with the team and let them know the highlights / lowlights and general trend. The team will, individually and collectively, have a view on how the project is going, so if you hide the performance from them, they will make up their own version of the truth. This may be a long way from what you are reporting, so when someone informally asks a member of the team how the project is going, they will get an answer that doesn't reflect your view.
The other reason to keep the team in the communication loop is that if the project is going well, they will be boosted by that knowledge. If it is going badly, they may be able to offer suggestions for getting it back on track, and in some cases these may be far more radical than you would have felt able to ask for.
Either way, if you want the team to act as mature participants rather than just resources, they deserve to know what is happening.