Markit Economics said the sector's PMI rose from 51, just above the break-even point of 50, to 57, which indicates solid growth.
Construction posted its highest PMI since June 2010 due to a "robust and accelerated expansion of overall business activity in the construction sector," Markit said.
Each of the sub-categories in construction, residential building, civil engineering and commercial construction, expanded, Markit said.
"July's survey highlights a new wave of optimism across the U.K. construction sector, with companies reporting a pace of expansion in excess of anything seen over the past three years," Senior Economist Tim Moore said.
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