The latest Markit/CIPS UK Construction Purchasing Managers’ Index was steady at 62.5 in March from 62.6 in February.

But confidence levels hit their highest mark since January 2007 with 59% of buyers expecting rising workloads in the next 12 months and only 5% anticipating a fall.

David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply , said: “Confidence in construction is soaring thanks to the budget boost and dissipating impact of the floods in a ringing endorsement the recovery will continue.

“Optimism is at its highest level since January 2007, complemented by an 11th consecutive month of increased activity.

“This is reflected in employment too where the sector maintained expansion and grew at its fastest pace in 4 months.

“As the rain gave way to sun, the housing market reclaimed its spot as the star performer. Commercial activity continued to rise strongly, benefitting from the positive business conditions.

“By contrast, civil engineering activity slowed somewhat, perhaps not that surprising following last month’s stellar figures.

“The rapid pace of expansion, which started last summer, is continuing to stretch resources and supplier capacity however, with delivery times lengthening to a level seen only once since July 1997.

“Supply constraints have now been around for a long time, and with rising cost inflation, are a growing concern that could hold the sector back.”

Tim Moore , Senior Economist at Markit and author of the Markit/CIPS Construction PMI, said : “House building reclaimed its place as the main driving force behind the resurgent UK construction sector in March, following some weather – related disruptions during the previous month.

“The rise in residential construction was one of the sharpest experienced over the past ten years, helped by strong demand for new development projects and supportive funding conditions.

“Improving economic fundamentals led to a faster rise in commercial activity during March, while civil engineering growth eased sharply from the survey – record high seen amid the flood relief efforts in February.

“Expectations for construction growth over the year ahead have now reached their highest since the start of 2007, and a strong pipeline of new work is fuelling job creation across the sector.

“However, the latest survey does little to dispel concerns that supplier capacity will become a fly in the ointment.

“Lead times for the delivery of construction materials lengthened in March by one of the greatest amounts since the survey began in April 1997, while subcontractor availability fell at the fastest rate for thirteen -and-a-half years.”