Sterling powers to three-month high

Sterling has surged to a three-month high against the dollar following buoyant growth figures for the construction industry.

The Markit/CIPS UK Construction Purchasing Managers' Index, where a figure above 50 indicates growth, rose from 49.1 during a snow-plagued December to 53.7 in January. All three sectors - housebuilding, civil and commercial - saw an increase in activity for the first time since August. The pound rose 0.5% against the dollar to $1.6232 following release of the data - its strongest showing for nearly three months - before slipping slightly to $1.6197 in afternoon trading. Sterling, which also climbed on the back of comments made by outgoing MPC member Andrew Sentance urging an intere...