Construction activity rose to pre-Christmas levels last month, after a sharp drop in February due to the bad weather, according to a report released today.

Barbour ABI’s latest Economic & Construction Market Review revealed that, with the value of contracts awarded worth £5.2 billion in March – an increase of 7.2% on the month before – experts are hopeful it will put the industry back on an upward trajectory.

The report also highlighted the following findings:

“Therefore it’s positive to see that activity has picked up again in March, with a healthy 7.2% rise on the month before. This is backed up by the latest ONS construction output data, which showed construction output in the first two months of the year at 4% higher than a year ago and growth forecasts for 2014 revised up to 4.5%.

“It’s clear that the continued strong performance of private housing and upturn in wider infrastructure has aided the upturn in this month’s figures, but necessary repair works and flood defence projects will have played a significant part too.

“Looking ahead, business indicators and official survey data all point to plenty of momentum in the economy and growing confidence, which is great news for the construction industry.”