London, April 3 (Bloomberg) -- U.K. construction picked up in March as demand for housingincreased, an industry report said. An index of construction activity rose to 56.9 in March from 56.2 the month before, a report bythe Chartered Institute of Purchasing and Supply, an employers' group, and BuildOnline, aconstruction company, said. A figure above 50 indicates expansion; the greater the activity, thefaster the expansion. ``Purchasing managers increased activity at the highest rate since last September in order tomeet high levels of new orders in the buoyant construction sector,'' said Roy Ayliffe, CIPS'director of professional practice. The figures are another sign consumers in Europe's second- largest economy have yet to feelany effect from slowing growth in the U.S. While businesses are starting to see fewer orders,consumers -- who build and buy houses -- are not yet. Civil engineering activity, which also rose to 54.8 from 52.5, also boosted the total. Commercialactivity also increased, but the rate of growth was unchanged at 57.0. Price inflation rose for the third straight month to the highest level since last October,increasing to 68.2 from 66.2. The rate of increase of new orders index slowed to 58.9 from 63.9. So did employment, whicheased to 54.6 from 55.0. Delivery times lengthened further, with the index at 44.4 from 44.7 inFebruary.