Confidence in UK economy "rebounds" - commercial mortgages

16 October 2006

Businesses within the UK, including those owned by people with commercial mortgages, are currently more optimistic about the economy than they were in August, according to a new report.

A survey by Lloyds TSB has found that 43 per cent of firms are more optimistic about the economy, while 28 per cent are more pessimistic.

The firm says: "67 per cent of firms expect their business activity to increase over the next 12 months while five per cent expect it to fall."

Meanwhile, the latest report on commercial property by development company Savills published last week, indicates that the construction of property has continued to grow, despite the slowdown experienced in August.

The survey found that construction of office property increased for the 37th consecutive month as demand remains strong.

Describing the economy as in its "top gear", Trevor Williams, chief economist at Lloyds TSB corporate markets, argues that the current conditions may lead to an increase in interest rates.