The Chartered Institute of Purchasing and Supply and Markit said their construction PMI index rose to 48.6 in January from 47.1 in December.

Employment in the sector fell at the slowest rate since August 2008, and construction firms remained confident about the prospects for recovery.

However, analysts said firms' confidence may be on shaky ground, especially as an expected clamp-down on government spending after the election is likely to hit major infrastructure projects.

Housebuilding was the only sector where construction output grew in January, although at a sharply lower rate than in December, according to the survey, while declines in commercial property activity and civil engineering eased.

Construction accounts for around 6% of Britain's economic output.