Commercial development activity accelerates – Savills
Growth in total UK commercial development activity accelerated in May, says Savills. The firm’s Total Commercial Development Activity Index had a net balance of +5.8% last month, up from +5.1% in April. Respondents to the survey indicated that better weather and new acquisitions contributed to the improved reading.
Private-sector commercial work increased for the ninth month in a row, but at +10.2% the net balance for private commercial activity was the lowest in the current nine-month period of growth, Savills notes. Public-sector commercial activity declined again – for the third consecutive month – but the rate of contraction eased compared with April.
Those surveyed in May displayed the highest level of positive sentiment about the three-month outlook since February, Savills notes. The net balance of expectations was +12.3%, up from +8.4% in April. Respondents said they expected commercial development to increase in line with the signing of new contracts, but they did remain concerned about the scarcity of bank financing.
