The uplift follows three consecutive monthly falls, with green shoots of growth fed by increases in both new work (1.1%) and repair and maintenance (1.2%).

At the sector level, six out of the nine sectors saw a rise in January 2024. The main contributors to the monthly increase were private new housing, and non-housing repair and maintenance, which increased 2.6% and 1.9%, respectively.

Clive Docwra, managing director of property and construction consultancy McBains, said: After three consecutive months of falling output, the industry will welcome January’s return to growth.

“The increase in private housing is particularly encouraging given the performance of this sector over the last few months.

“The hope is that if mortgage rates ease, it could lead to increased residential demand which in turn could trigger a bigger turnaround in housebuilding numbers.

“But whether the increase in January turns out to represent the green shoots of wider recovery or a blip remains to be seen.

“Growth over the longer term is estimated to have decreased 0.9% in the three months to January 2024, highlighting that conditions remain unsettled for many industry sectors.”

Scott Motley, head of programme, project and cost management at AECOM: “January’s increase in output raises hopes that the construction sector is turning a corner.

“Inflationary issues have receded since the start of the year, and most long-term cost issues within contracts have either been renegotiated or worked through.

“That said, the cost of borrowing remains heightened at a time when we’re seeing tender activity becoming more competitive in some subsectors.

“Most contractors remain reasonably confident in their financial health but, the fact that this is being billed as a year for modest growth suggests some firms will struggle as we head into the Spring.

“Indeed, many will be watching carefully as house builder earnings season – a bellwether for others – gets underway this week.”