The rate of growth in construction activity in Ireland rose slightly in March after four successive months of slowing performance, according to the latest Ulster Bank Construction Purchasing Managers Index.

The index which registered 52.9 last month as against 52 in February, indicates a modest improvement in both housing and commercial activity and a faster pace of new orders growth, which should support activity in the months ahead. Any measure higher than 50 indicates growth in the sector.

The index registers the 19th successive month of increased employment in the sector in March though the rate of new jobs growth slowed to its lowest level since December 2013.

The cost of construction labour and materials rose for the second month in a row, principally due to the strength of sterling against the euro.

Ulster Bank says its latest report on the business sector shows a significant amount of positivity.

Chief Economist with Ulster Bank Simon Barry says he expects overall growth in 2015: "The fact that some of the forward-looking elements of the survey are holding up reasonably well does offer encouragement."

He continues: "So there are two elements of the survey in particular: new orders, which did pick up a little bit in March in the latest results, and also we asked firms about their overall outlook for the next 12 months and the overall levels of optimism are very strong."