Home building in Britain in October helped lift a key construction sector index to the highest level since September 2007, research firm Markit Economics said.
The purchasing managers index for the month "indicated that a sharp rebound in U.K. construction output continued at the start of the fourth quarter," Markit Economics said Monday.
The headline PMI for the construction sector hit 59.4 in October, up from September's 58.9 reading and topping a six-year high of 59.1 set in August.
October marked the sixth consecutive month the index has registered above the break-even level of 50, as job creation in construction accelerated to the fastest pace in six years, Markit said.
Of the three sub-sectors, residential housing construction remained the strongest performing, despite slipping slightly off of a 10-year peak set in September, Markit said.
Markit pointed to "better housing market conditions as a key driver of activity growth."
Markit said that 52 percent of the respondents to the monthly survey indicated they anticipated a rise in production in the next 12 months, while 12 percent indicated they expected business to decline.