Conditions deteriorated at the slowest pace in five months in January, with companies optimistic that wider economic conditions will improve this year, a survey showed on Monday.

The Ulster Bank Construction Purchasing Managers' Index rose to 36.1 in January from 33.1 in December, but was still a long way from  the 50 mark representing growth, a threshold it last reached in June 2007.

"The January survey picked up a clear improvement in optimism as respondents expressed an expectation that the wider economy will improve over the coming year," said Simon Barry, Chief Economist Republic of Ireland at Ulster Bank.