Activity in the construction sector is at its lowest level in 18 months after a year of growth in 2014.

The latest Ulster Bank Construction Purchasing Managers' Index shows housing activity stagnated in February for the fourth successive month.

It says this was evident in terms of activity, new orders and employment - while sentiment fell back to its lowest level since October 2013.

Some panellists reported an improvement in business conditions, but others indicated that a lack of new orders had led them to reduce activity.

New mortgage rules being imposed by the Central Bank may have effected the sector. However there was also a big drop in commercial activity, suggesting the causes go beyond this.

Mixed trends were recorded across the three monitored sectors in February. Commercial activity rose at a solid pace - albeit one that was much weaker than in the previous month - while work on civil engineering projects decreased for the first time since September last year.

New orders rose modestly last month, as the rate of growth continued to slow sharply from the recent peak seen last October.

A weaker rise in employment was also seen in February, with the rate of job creation the slowest since June 2014. Some panellists reported having taken on extra staff in anticipation of rising workloads - but others signalled a lack of new work to replace completed projects.

Chief Economist at Ulster Bank Simon Barry says there is scope, as well as a need for growth, in construction activity here.