Research conducted by Barbour ABI showed that March netted £6.1bn worth of construction contracts which were delivered, almost 10% higher than the previous month.

Michael Dall, Lead Economist at Barbour ABI, said: “It’s encouraging to see the industry pick up the pace after a lacklustre start to the year.

“Housebuilding once again continues to storm ahead in the industry, as housebuilders continue to try to keep pace with the demand and appetite for new housing.

“With both the commercial and retail and infrastructure sectors increasing their levels of activity in March, it would be good to see this continue and take some of the pressure away from private housing, which has been the only sector that has continually grown and at times propped up the industry in recent years.”

Residential construction saw £1.9bn worth of contracts, accounting for 31% of the total share.

Meanwhile, infrastructure was responsible for 24% of contracts, whilst commercial and retail received 16%.

The commercial and retail sector increased its monthly contract value by 25% and infrastructure by 3%, which is an extra £500m of contract value compared to February. 

However, Michael warned that the future of construction remains uncertain.

“With the EU referendum looming, it will be interesting to see over the coming months what affect it will have across the sector, as there is anecdotal evidence to suggest this is starting to make an impact on investment decisions inside construction boardrooms.”