Investing.com - U.K. construction sector activity surged to a 17-month high in May, bolstering optimism over the British real estate market, industry data showed on Friday.
In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply (CIPS) said that their U.K. construction purchasing managers' index rose to a seasonally adjusted 56.0 last month from April’s reading of 53.1. That was its highest reading since December 2015.
Economists had expected the index to slip to 52.7 in May.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
“The forward-looking elements of the latest survey are reassuring for the construction sector, notably the acceleration in new business growth to its strongest so far this year,” Markit senior economist Tim Moore commented in the report.
“On the price front, while construction costs have ratcheted up over the past six to nine months, the wave of inflation from imported materials now appears to have passed its peak,” he added.
Following the report, GBP/USD traded at 1.2871 compared to 1.2867 ahead of the release, EUR/GBP was at 0.8722 compared to 0.8721 earlier, while GBP/JPY traded at 143.54 compared to 143.49 previously.
Meanwhile, European stock markets were trading higher. London’s FTSE 100 gained 0.36%, the Euro Stoxx 50 rose 0.97%, France's CAC 40 traded up 0.77%, while Germany's DAX advanced 1.07%.