Investing.com - U.K. construction sector activity expanded at the fastest rate in seven months in August, pointing to a continued strong recovery in the sector, according to data released on Tuesday.
The Markit/Chartered Institute of Purchasing & Supply U.K. construction purchasing managers' index rose to 64.0 last month from 62.4 in July. Economists had expected the index to tick down to 61.4.
It was the fastest increase in output since January and was the second-strongest rate of output expansion since the pre-recession peak seen in August 2007.
Residential construction posted the fastest rise in activity the report said. Civil engineering activity increased at the strongest pace since March, while growth in commercial construction remained close to the fastest rate since the summer of 2007.
“UK construction firms saw one of the sharpest rises in output for seven years in August, with increasing workloads driven by an array of factors including surging homebuilding activity, greater infrastructure spending and renewed confidence within the commercial development sector,” said Tim Moore, senior economist at Markit and author of the report.
GBP/USD was trading at 1.6565 from around 1.6564 ahead of the release of the data, while EUR/GBP was at 0.7920 from 0.7926 earlier.
Meanwhile, European stock markets remained broadly higher. London’s FTSE 100 tacked on 0.27%, the DJ Euro Stoxx 50 rose 0.70%, France’s CAC 40 was up 0.44%, while Germany's DAX advanced 0.90%.