Investing.com - UK construction sector activity grew more than expected in November, hitting its fastest pace in five months and bolstering optimism over the British economy, industry data showed on Monday.
In a report, market research firm IHS Markit and the Chartered Institute of Purchasing & Supply (CIPS) said that their UK construction purchasing managers' index rose to a seasonally adjusted 53.1 last month from October’s reading of 50.8.
Economists had expected the index to inch up to only 51.0 in November.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
IHS Markit highlighted that residential work drove the modest construction rebound, while commercial and civil engineering activity continued to decline.
The market research firm also pointed out that business optimism picked up from October’s near five-year low.
“UK construction companies experienced a solid yet uneven improvement in business conditions during November,” IHS Markit associate director Tim Moore commented in the report.
Moore also noted that the increase in confidence, the first in three months, was “attributed to increased sales enquiries and hopes that risk aversion among clients will recede over the course of next year.”
Following the report, GBP/USD traded at 1.3441 compared to 1.3435 ahead of the release, EUR/GBP was at 0.8820 compared to 0.8826 earlier, while GBP/JPY traded at 151.72 compared to 151.74 previously.
Meanwhile, European stock markets were trading higher. London’s FTSE 100 gained 0.81%, the Euro Stoxx 50 rose 0.99%, France's CAC 40 traded up 0.94%, while Germany's DAX advanced 1.17%.