Carolinas AGC Construction Barometer CHARLOTTE, N.C., Nov. 27 /PRNewswire-USNewswire/ -- In an unusual turn of events, the Carolinas AGC Construction Barometer fell 1.4% in Quarter 2, 2007 on deteriorating financial market conditions offset by an improvement in construction labor market conditions. Unexpectedly, contractors reported easier hiring conditions, a growing supply of qualified workers, and stable wage rates for skilled labor. These improved conditions are anticipated to continue well into 2008. Continuing job losses in residential construction are providing a labor market safety valve to the red-hot need for commercial construction workers. In another unexpected turn, contractors noted that long-term interest rates for construction financing were sharply higher in 2nd quarter -- but this increase was not met with a similar increase in short-term interest rates on lines of credit, etc. Moreover, contractors reported very little deterioration in demand for credit, and modestly stronger planned expenditures for new construction equipment. The combination of improved labor conditions and deteriorating financial conditions drove the composite Barometer score downward by a slight 1.4%. Contractor panelist optimism prevails that stable business conditions will continue well into 2008; excluding the sharp drop in financial market conditions, there's virtually no bad news to report. Materials and equipment costs remain stable with the exception of oil prices, and there's confidence that the spike in materials and equipment costs experienced in 2005 and 2006 will not reoccur in the next several quarters.
