The construction sector has had a strong start to 2018 reporting faster increases in activity, employment and new orders, according to the Ulster Bank Construction Purchasing Managers' Index.

"The latest results paint a very encouraging picture of earlyyear activity trends in Irish construction," Ulster Bank Republic of Ireland Chief Economist Simon Barry said.

"There was a particularly notable acceleration in commercial activity, making it the fastest-growing sector last month. However, the improvement was broadly based, with the housing PMI also rising to an eight-month high, consistent with ongoing very rapid activity growth,” he added.

The construction sector has seen increases in activity since September 2013 with many experts tying the increase to new contracts.

But rising input costs are putting pressure on suppliers and combined with shortages of materials caused further delays to delivery times.

Adjusted seasonally, the index tracks changes in total construction activity and covers three areas — housing, commercial and civil engineering.