Small Construction Businesses Grow More Upbeat

Buffalo Grove, IL, March 10, 2009--Owners of construction and contracting businesses have an improved outlook for the general economy during the next 12 months as the Small Business Research Board (SBRB) said its Confidence Index (SBCI) increased slightly during the fourth quarter.

The construction and contracting industry reported an SBCI of 34 during the fourth quarter, a three point increase from the 31 recorded during the second quarter of 2008, according to the study co-sponsored by IPA.

The fourth quarter 2008 SBCI for all small business was 36 and is six points above the indicator's historical low of 30 recorded during the second quarter of 2008.

The higher construction and contracting SBCI resulted from a positive outlook regarding the general economy in the next 12 months with 40% of the respondents reporting expectations of an improved economy over the next 12 months, an increase of 12 points from the second quarter of 2008.

Also contributing to the higher SBCI is the determination that 27% of respondents plan to increase hiring in the next year. This is up three points from the pervious study held in the second quarter of 2008.