House building has risen to its fastest level since the year 2000. According to the latest Ulster Bank Construction Purchasing Managers' Index (PMI), the sector has now seen 13 consecutive months of increased activity.

Meanwhile, civil engineering dropped in September - however, commercial construction recorded a sharp increase.

The survey found that the rise in activity was partly driven by strong growth in activity on housing projects.

"Residential activity increased at the fastest pace since data were first collected in June 2000. Commercial activity also rose at a sharp pace in September, albeit the weakest in three months. On the other hand, civil engineering activity continued to decrease, and at a faster pace," it says.

Construction firms have also increased employment, with a rise in new orders during the month. It found that new business increased for the 15th month running and at a faster pace than in August.

The rate of job creation in September was much faster than seen in the previous month and the strongest since April.

Firms also upped their usage of sub-contractors in September - the seventh successive month in which that has been the case. However, it found that the pace of increase slowed.

Around two-thirds of all respondents expect activity to be higher in 12 months' time, with optimism remaining at a near-record level in September.

It also concluded that ongoing growth of new business was predicted to increase.

Ulster Bank chief economist Simon Barry says he expects the rising trend of house building to continue in the months ahead.