Investing.com - British construction activity increased at the fastest rate since March last month, led by another solid increase in residential work, industry figures showed on Wednesday.
Financial data company Markit said its construction purchasing managers’ index rose to 52.6 in October from September’s 52.3.
Economists had expected the index to tick down to 51.8.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
New order volumes picked up across the construction sector, but the rate of growth eased since September and remained weaker than seen prior to this summer.
Housing activity remained the key growth driver across the construction sector in October.
There was also a stabilization in commercial construction activity during October, while civil engineering decreased slightly.
"The UK construction sector has started the fourth quarter in a positive fashion, with the latest survey data revealing a moderate rebound from the downturn seen during the summer," Markit economist Tim Moore said.
GBP/USD was trading at 1.2263 from around 1.2256 ahead of the release of the data, while EUR/GBP was at 0.9035 from 0.9036 earlier.