November data indicated that the UK construction sector continued to rebound from the weak patch recorded on average during the third quarter of 2016. Business activity and incoming new work increased at the strongest pace since March, although both rates of expansion remained much softer than the peaks achieved at the start of 2014.

Greater workloads underpinned a further solid rise in employment levels and input buying among construction firms.

However, average cost burdens rose sharply, with the rate of inflation the steepest since April 2011.

The seasonally adjusted Markit/CIPS UK Construction Purchasing Managers' Index picked up slightly to 52.8 in November, from 52.6 in October, thereby signalling an expansion of total business activity for the third month running.

Reports from survey respondents cited improved order books, alongside resilient client confidence and strong demand for residential projects. There were again reports that heightened economic uncertainty was a key factor weighing on output growth across the construction sector.