* Commercial Property Index -12.1 in Aug vs -7.4 in July
* Developers' confidence hit by concerns over UK recovery
and bank lending
LONDON, Sept 12 UK commercial development
activity fell at its fastest rate in 11 months in August, hit by
concerns over the stability of Britain's economic recovery and
bank lending, a report by property advisor Savills
showed on Monday.
Savills' Total Commercial Property Sector Index, which
surveys 200 developers, funders and contractors, fell to -12.1
in August from -7.4 in July. Some 29 percent recorded a fall and
17 percent saw a rise.
An index figure greater than zero indicates growth in
activity and less than zero denotes a fall.
Growth expectations for the next three months slid to -3.5
in August from -2.3 in July, with about 18 percent of
respondents forecasting activity to decrease, versus 15 percent
expecting a rise.
"Worsening economic data in August led to a further decline
in developers' confidence about the future. However,
refurbishment activity continued to rise, reflecting its
perceived lower risk," Savills' Head of Building Consultancy,
Michael Pillow, said in the report.
On Sept 1, the British Chamber of Commerce cut its forecast
for UK GDP growth this year to 1.1 percent from the 1.3 percent
in its June quarterly forecasts, citing a disappointing start to
the year and worsening global prospects.
(Reporting by Brenda Goh; Editing by Hans-Juergen Peters)