For first quarter 2009, the Carolinas AGC Construction Barometer posted a modest 3.3% gain because of growing empirical evidence of a slowing rate of economic deterioration in Carolinas commercial construction. The rate of downward change in first quarter was much less severe than the drop in activity in 2008.

The Business & Economic Trends segment on the Barometer's quantitative side advanced 17.6%, posting its strongest gain in two years on modestly rising business activity and contractor expectations that the worst of the recession is behind us. Contractors reported a small increase in highway and utility project activity, and private sector work-in-process is holding steady where developers can obtain financing.

The Carolinas' construction labor market also reflects a slowing rate of deterioration. Quantitative trends in financing also reflect a slowdown in the downward movement of business activity.

While these trends are somewhat encouraging, the financial market activity and contractor-borrowing requests remained at unprecedented low levels in first quarter. The Barometer's quantitative indicators aren't falling nearly as fast as in 2008, but we're still at rock bottom levels of business activity compared with the last 10 years.

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