In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index increased to a seasonally adjusted 59.4 in October from a reading of 58.9 in September.
Economists had expected the index to hold steady at 58.9 last month.
Commenting on the report, senior economist at Markit Tim Moore said, 'U.K. construction output continues to rise like a phoenix from the ashes, with housing, commercial and civil engineering activity all seeing strong rates of expansion at the start of the fourth quarter.'
Following the release of the data, the pound added to gains against the U.S. dollar, with GBP/USD rising 0.17% to trade at 1.5955.
Meanwhile, European stock markets remained higher. The EURO STOXX 50 rose 0.3%, France's CAC 40 added 0.3%, Germany's DAX inched up 0.3%, while London's FTSE 100 advanced 0.45%.
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U.K. construction PMI rises to 6-year high of 59.4 in October
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