UPDATE 1-Galliford Try says housebuilding sales strengthen

* Housebuilding sales up 7 percent at 274 million pounds

* Construction outlook marred by public sector doubts

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LONDON, Nov 6 (Reuters) - Housebuilder and construction company Galliford Try (GFRD.L) reported improved sales and income levels in its housebuilding operations on Friday, but is more cautious in its outlook for construction.

After recently raising 119 million pounds for land buys, Galliford said it is "cautiously optimistic on the immediate outlook for housebuilding".

But the outlook for the construction sector is less upbeat.

"We continue to view the outlook (for construction) with caution as future constraints on public expenditure will add to the competitive pressures across the industry".

The company reported total housebuilding sales, reserved, contracted or completed up 7 percent than last year at 274 million pounds ($452.6 million), and added it has seen continued momentum in the autumn selling season.

This follows positive trading updates from UK housebuilders Taylor Wimpey (TW.L) and Redrow (RDW.L) on Wednesday, which lifted shares in the sector [ID:nL4449667]

In construction, the group's order book has risen to 1.75 billion pounds, with the lion's share for public sector or regulated sector contracts. It added the spread of its order book is propping up its operations in a tougher market.

($1=.6053 Pound) (Reporting by Lorraine Turner; Editing by Matt Scuffham)