The Construction Products Asssociation said during the second quarter even small and medium sized businesses, the hardest hit by the downturn, reported their first rise in activity since 2007.
Its survey found 72% of building contractors reported a rise in building work, activity increased in all sectors with conditions most improved in housing, where about 40% said output was up.
"Forecasts from the association anticipate construction output will rise 2.2% in 2014 and a further 4.5% in 2015, driven by both private housing and infrastructure," a spokesperson said.