Business mortgages affected by construction industry boost?

06 May 2010

Written by Simon Whittaker.

Those looking for a business mortgage might be interested to know that there was an increase in commercial property activity in April, according to the latest Purchasing Managers' Index from the Chartered Institute of Purchasing and Supply in conjunction with Markit.

The data showed both commercial property and residential property construction have gathered pace following an increase in new orders, while incoming business has not seen this level of growth since October 2007.

April was the second month in a row that there was a rise in construction industry activity and it is accelerating at a rate not seen since August 2007, the monthly study noted.

UK construction companies polled for the report felt positive about the future and said they expected to see additional gains in new orders despite further contractions in the civil engineering sector.

Sarah Ledger, economist at Markit, said: "Optimism over future business prospects continued to improve ... this suggests that growth in private business may help to offset any impending weaknesses in public sector demand."

The latest Global Commercial Property Survey conducted by the Royal Institution of Chartered Surveyors revealed there was also a rise in positivity regarding the outlook for lettings.

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