Construction activity rose to pre-Christmas levels in March after a sharp drop in February due to the bad weather, according to a new report published by Barbour ABI, the construction intelligence services provider.
The value of contracts awarded was worth £5.2 billion in March, which is an increase of 7.2 per cent on the previous month. As a result, experts are hopeful it will put the industry back on an upward trajectory, with the value of new contracts rising by almost 25 per cent year-on-year.

These figures come from Barbour ABI's latest Economic & Construction Market Review, which also shows that residential construction is still the most dominant type of contract awarded in the UK, accounting for more than a third of the total contracts by value. During the past 12 months, there have only been two months in which residential construction has accounted for less than 30 per cent. Barbour ABI says this is a sign that house building continues to drive the industry's long-term recovery.

Also highlighted in the report is the fact that London's hold on the market resulted in a disproportionate share of contracts awarded, with the capital accounting for more than a quarter of the total value, but only 14 per cent of the projects by quantity. Five of the top 10 most valuable contracts were located in the city.

Lead economist at Barbour ABI, Michael Dall, said: 'All the indicators pointed towards a poor month for construction in February, with the severe weather possibly forcing contractors to put work on hold and new projects unable to commence.

'Therefore it's positive to see that activity has picked up again in March, with a healthy 7.2 per cent 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 per cent higher than a year ago and growth forecasts for 2014 revised up to 4.5 per cent.'

Mr Dall added: '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.'