The survey’s seasonally adjusted UK Construction Purchasing Managers’ Index (PMI) also showed a slight increase to 52.8 in November from 52.6 in October.

Business activity has risen by its highest rate since March, while there has been an increase in the volume of construction output.

However, construction business reported a sharp rise in cost burdens, which has been linked to rises in supplier costs in response to exchange rate depreciation.

Some construction firms surveyed reported a boost in workloads caused by the resumption of projects delayed in the aftermath of the Brexit vote.

Tim Moore, senior economist at IHS Markit and author of the Markit/CIPS Construction PMI, said: “A number of firms cited uncertainty related to supplier price hikes as an emerging threat to the construction sector, with survey respondents commenting on difficulties [in] forecasting project costs against a backdrop of rapidly changing inflationary pressures.”

David Noble, group chief executive officer at the Chartered Institute of Procurement & Supply, said: “Reports of lingering uncertainty around the progress of Brexit negotiations had business optimism divided, where only 45% of respondents expected a rise in activity next year – one of the lowest since the middle of 2013.

“And, as commentators warn about more inflationary impacts next year, the sector will be concerned that decisions from policymakers must ensure these effects are minimalised so that growth is maintained.”