Investing.com - U.K. construction sector activity in August expanded at the fast rate since September 2007, fuelling optimism over the country’s economic outlook, industry data showed on Tuesday.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index rose to a seasonally adjusted 59.1 in August from a reading of 57.0 in July.
Economists had expected the index to improve to 58.3 last month.
The latest reading indicated a sharp rise in total business activity and the fastest pace of output expansion in the construction sector since September 2007.
Commenting on the report, senior economist at Markit Tim Moore said, “With overall output levels now rising at the fastest pace for around six years, it seems highly likely that the construction sector will provide another positive contribution to U.K. GDP in the third quarter of 2013.”
Following the release of the data, the pound added to gains against the U.S. dollar, with GBP/USD rising 0.29% to trade at 1.5586.
Meanwhile, European stock markets remained lower. The EURO STOXX 50 inched down 0.1%, France’s CAC 40 shed 0.3%, Germany's DAX dipped 0.3%, while London’s FTSE 100 was flat.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index rose to a seasonally adjusted 59.1 in August from a reading of 57.0 in July.
Economists had expected the index to improve to 58.3 last month.
The latest reading indicated a sharp rise in total business activity and the fastest pace of output expansion in the construction sector since September 2007.
Commenting on the report, senior economist at Markit Tim Moore said, “With overall output levels now rising at the fastest pace for around six years, it seems highly likely that the construction sector will provide another positive contribution to U.K. GDP in the third quarter of 2013.”
Following the release of the data, the pound added to gains against the U.S. dollar, with GBP/USD rising 0.29% to trade at 1.5586.
Meanwhile, European stock markets remained lower. The EURO STOXX 50 inched down 0.1%, France’s CAC 40 shed 0.3%, Germany's DAX dipped 0.3%, while London’s FTSE 100 was flat.