UK construction data cheers markets and bolsters sterling

October's purchasing managers' index for the building industry shows the sector in rude health, according to analysts

A surge in new work across the UK construction industry in October cheered financial markets and sent the pound close to a 10-week high against a basket of currencies.

Building firms took on new work at the fastest rate for a year, according to the CIPS/Markit purchasing managers' index (PMI) for the construction industry. The index, published on Tuesday, suggests the British economy has recovered quickly from the turmoil caused by China's dramatic slowdown.