LONDON, Jan 5 Reuters Sterling rose on Friday to a twoandahalf week high against a weakening euro after various business data showed some evidence that Britain39;s economy was more resilient than feared in December.

Britain39;s construction sector showed signs that it might have seen the worst of a slump caused by interest rates surging to a 15year high of 5.25 in August.

The SP GlobalCIPS UK construction Purchasing Managers39; Index PMI rose in December to 46.8 from November39;s 45.5 but remained below the 50.0 growth threshold for a fourth month in a row.

The allsector PMI, combining the construction data with services and manufacturing figures released this week, rose to 51.7 in December from 50.2 in November, its highest since June.

Separate data from mortgage lender Halifax showed that British house prices rose in annual terms in December for the first time in eight months, adding to signs of a stabilisation in the property market.

In the meantime, an industry body said the British new car market witnessed its best year since the COVID19 pandemic as easing supply chain issues helped fulfil pentup demand for fleet vehicles.

The pound rose 0.14 against the euro to 86.19 pence . Against a strengthening dollar , it fell 0.13 to 1.2665.

Jane Foley, head of FX strategy at Rabobank, said it is still difficult to paint an optimistic picture for the sterling outlook, but she expects the euro to remain under pressure against the pound on a 12month view amid ongoing…