Construction firm Taylor Woodrow has warned that demand from US tech giants for commercial property in the Thames Valley has eased.

It noted that because of the economic slowdown hitting US firms it had seen evidence of cutbacks.

Chairman Dr Robert Hawley said at the company's annual general meeting last week: "The UK commercial property market is seeing some deterioration as a result of the economic slowdown in the US. This is particularly evident in the Thames Valley, where occupier confidence from American businesses has eased."

In contrast, consumer confidence in the UK housing market remained strong, mainly because of lower interest rates.

Taylor Woodrow's commercial property arm, which accounts for 15 per cent of its profits, is on course for growth despite the slowdown, Dr Hawley added.

He said: "The firm's overall outlook is positive, though building delays because of poor weather will shift the balance of financial results towards the second half of the year."

Dr Hawley said the merger of its housing business with Bryant was progressing well.

He told shareholders: "You are seeing an energetic new Taylor Woodrow, which has a confident vision of the future."